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UBS projects the S&P 500 to reach 6,600 by the end of next year, despite fewer anticipated Federal Reserve rate cuts, now expected to occur in June and September 2025. The Fed's decisions will depend on economic data, particularly labor and inflation trends, while UBS advises investors to focus on high-grade bonds and diversified income strategies.
US equities stabilized as the S&P 500 dipped 0.1% to 5,867, while bond yields rose amid expectations for a gradual Federal Reserve easing cycle starting in 2025. UBS forecasts the S&P 500 reaching 6,600 by the end of next year, despite fewer anticipated rate cuts, and advises investors to focus on high-grade bonds and diversified income strategies.
US equities stabilized as the S&P 500 dipped 0.1% to 5,867, while 10-year Treasury yields rose to 4.57%. UBS forecasts the index to reach 6,600 by the end of next year, despite fewer anticipated Fed rate cuts, emphasizing a focus on high-grade bonds and diversified income strategies.
UBS forecasts the S&P 500 to reach 6,600 by the end of next year, despite expectations for fewer Federal Reserve rate cuts, now anticipated in June and September 2025. The Fed is closely monitoring labor market trends and inflation, with core inflation currently at 2.8%. Investors are advised to focus on high-quality bonds and diversified income strategies while considering the overvaluation of the US dollar.
Bitcoin is currently trading between $96,000 and $98,000, supported by significant buying activity from over 1.16 million BTC held in wallets. Despite a recent drop below $100,000 due to a hawkish stance from the Federal Reserve, 86% of holders remain profitable, with many continuing to accumulate BTC. Analysts warn that if Bitcoin falls below $96,000, it could drop to $90,000, while a bullish target of $110,000 remains in sight.
Bitcoin's price experienced significant volatility, dropping from an all-time high of over $108,000 to around $92,000 following the FOMC meeting, where Chairman Jerome Powell hinted at a slowdown in rate cuts due to rising inflation. This led to a market-wide sell-off, with nearly $700 million withdrawn from financial vehicles and over $1.3 billion in liquidations across the crypto market. Altcoins also suffered, with Ethereum down nearly 15% and DOGE plummeting 25%, raising concerns about the sustainability of the current bull run.
Bitcoin's price has fallen below $100,000, prompting increased discussions about "buying the dip" as investor sentiment shifts amid a broader market downturn. The Federal Reserve's recent interest rate cut and mixed economic forecasts have contributed to this volatility, with altcoins like Ethereum and Solana also experiencing declines. Despite the overall market slump, some assets like Movement and Zerebro have shown significant gains, while global search interest in cryptocurrencies continues to wane.
Solana's price has faced significant volatility, dropping nearly 20% to around $175 amid a broader market sell-off that erased over $250 billion. Despite a recent rebound to $187, concerns over regulatory comments from the Fed Chair suggest that Solana may struggle to maintain bullish momentum, with potential consolidation between $198 and $186 before further price action. If bullish support wanes, the price could dip closer to $155.
Bitcoin's price plummeted to $92,000, triggering $1.4 billion in liquidations, with altcoins like Ethereum and XRP suffering even greater losses. Spot Bitcoin ETFs experienced record outflows of $672 million, coinciding with a broader market downturn following comments from the Federal Reserve chair about interest rates. Despite the turmoil, some traders remain optimistic about future gains, citing potential support from a pro-crypto administration.
Wall Street faced volatility as the S&P 500 and Nasdaq marked their third consecutive day of losses, while the Dow ended a 10-day losing streak. FedEx surged 8.5% after a strategic spin-off, while Nike shares fell 6% amid a delayed turnaround plan. Novo Nordisk's obesity treatment trial results disappointed, causing its stock to drop, while Berkshire Hathaway increased its stake in Occidental Petroleum.
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