Equity markets stabilize after a bruising week, but volatility in risk assets isn't going anywhere
After a week that reminded investors what a real pullback feels like, US equity markets are clawing back some ground. The S&P 500 is holding roughly flat, while the Nasdaq is off about 0.3%, which counts as a quiet day given what just happened.
The prior week saw the Nasdaq shed roughly 4.6% and the S&P 500 drop around 2%.
What actually happened this week #
The recovery story started taking shape on June 29, when the S&P 500 climbed 1.2%, closing at 7,440.43. The Nasdaq did even better, gaining 2.1% to finish at 25,820.14.
The catalyst was largely a revival in technology and AI-linked equities, sectors that had been at the center of the prior week’s selling.
By July 1, the S&P 500 was trading in a tight band between 7,492 and 7,494, with a daily move of roughly 0.1% to 0.37%.
Risk assets broadly: the crypto read-across #
Bitcoin traded near $58,188 in late June, caught in its own version of the broader risk-off sentiment that hit stocks during the losing week.
The equity bounce from June 29 has not, so far, translated into a meaningful Bitcoin recovery. No specific crypto protocols or blockchain projects are driving the current narrative. When Bitcoin’s price is being pushed around by Federal Reserve expectations and inflation prints rather than on-chain developments or protocol upgrades, the signal-to-noise ratio for crypto-specific analysis drops considerably.
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