Powell’s surprise speech causes market carnage, crypto remains steady

The S&P 500 saw its sharpest daily drop since early 2020 following Powell’s remarks, wiping out a staggering $1.8 trillion in market value.

This market shock comes as a severe blow to hopes of a year-end recovery as investors digest the Fed’s stance on interest rates, while traditional markets suffer. The crypto sector has shown surprising resilience in the current environment, maintaining relatively stable levels despite the broad sell-off.

With year-end expectations effectively shattered, market sentiment remains fragile and investors are now anxiously awaiting further developments.

Powell’s tone has fueled concerns of prolonged economic pressure. Interestingly, political voices could soon enter the discussion, with speculation that figures like Trump could step in to challenge Powell’s approach to monetary policy.

Traders should brace for increased volatility across all asset classes as uncertainty continues to dominate headlines.