US Market Digest: Hawkish Fed Guidance Supports US Dollar

Federal Reserve Holds Rates, Prepares Markets for December Move

The Federal Reserve maintained interest rates at its latest policy meeting, as widely anticipated. However, Chair Kevin Warsh signaled growing concern over re-accelerating inflation, keeping the possibility of a rate hike in December firmly on the table. This hawkish outlook provided underlying support for the US dollar while putting pressure on equity futures and precious metals.

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Investors are closely monitoring upcoming economic data, particularly the US Personal Consumption Expenditures (PCE) price index. Stronger inflation prints are expected to heighten expectations of monetary tightening in December, likely bolstering the greenback. Beyond US data, foreign exchange markets are tracking today's European Central Bank policy decision and tomorrow's Bank of Japan meeting.

Technology Pullback Weighs on Equities; Commodities Retreat

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US equity futures lost ground as the rally in mega-cap technology stocks stalled. Nasdaq 100 futures dropped 1.0%, while S&P 500 futures fell 0.2%. The pullback was driven by weak earnings results, with Alphabet plunging 10% after missing revenue expectations and Samsung losing 4% amid declining profits. In contrast, Microsoft and Oracle posted gains following strong cloud guidance, with upcoming reports from Amazon and Apple remaining in focus.

Commodities experienced downward momentum as Treasury bonds attracted safe-haven demand, driving yields lower. Gold and silver traded lower alongside broader risk assets. Meanwhile, Brent crude eased to around $113.90 per barrel, influenced by diplomatic efforts aimed at reducing regional tensions involving Iran.

Bitcoin Tests Key Technical Levels Amid Corporate Strategy Shift

In digital assets, Bitcoin faced downward pressure, hovering near the $80,000 level. Technical resistance is visible near $81,500, representing the average entry point for spot ETF investors. The market is adjusting to news that Strategy Holdings has temporarily paused its Bitcoin acquisitions, redirecting capital toward repurchasing its preferred shares (STRC).

Strategy Holdings currently holds 848,517 BTC at an average cost basis of $75,446. Although the firm retains approximately $4 billion in unrealized gains, recent market weakness has eroded roughly $3 billion from recent purchases. A sustained drop below the $75,446 average cost level would heighten market scrutiny regarding corporate reserve management and institutional buying capacity.

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