Powell's shocking speech causes a bloodbath in the market, cryptocurrency remains stable
The S&P 500 saw its sharpest one-day decline since early 2020 after Powell's remarks, wiping out $1.8 trillion in market capitalization. This market shock dealt a heavy blow to hopes for a year-end rally, as investors consider the Federal Reserve's stance on interest rates. While traditional markets are reeling, the cryptocurrency sector has shown surprising resilience under current conditions, maintaining a relatively stable level despite widespread sell-offs.
With expectations for a 'Santa Claus' rally effectively extinguished, market sentiment remains fragile. Investors are now eagerly awaiting the next developments, as Powell's tone has raised concerns about prolonged economic pressures. Interestingly, political voices may soon join the discussion, with speculation that figures like Trump could step in to challenge Powell's approach to monetary policy. Traders should prepare for increased volatility across all asset classes as market instability continues to dominate headlines.
