The Federal Reserve's upcoming announcement has traders on edge. While the CME FedWatch tool shows a 66% chance rates will stay at 3.5% to 3.75%, the remaining 34% chance of a hike keeps markets tense.
Tech stocks are sliding deeper into correction, with giants like Meta, Microsoft, and Qualcomm set to release earnings this week. This cluster of major reports coincides with the Fed's decision, creating a volatile mix. Higher interest rates threaten the appeal of growth stocks, since increased borrowing costs make future profits less valuable today.
Cryptocurrency markets mirror this uncertainty. Bitcoin recently climbed back near $64,000, gaining about 1.5% in 24 hours, but remains down 2.8% over the past week. Ethereum struggles below the $2,000 mark, modestly up but fragile. Solana and XRP show slight gains, yet the overall mood remains cautious.
