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Bitcoin and global equities showed signs of stabilization following a sharp decline earlier in the week, with the S&P 500 and Nasdaq recovering some losses. However, bond markets remained bearish, with Treasury yields holding near multi-month highs, signaling persistent concerns about inflation and Federal Reserve policy. The divergence between equity and bond markets highlights uncertainty among investors, as equities reflect optimism about economic resilience while bonds indicate fears of prolonged tightening. This mixed market environment poses challenges for traders, particularly in the crypto sector where Bitcoin’s recovery lacks strong volume support. The bond market’s resistance to easing suggests the Fed may maintain a hawkish stance longer than anticipated, impacting risk appetite. For Gulf investors, the interplay between equity rallies and bond yields could influence portfolio allocations between growth assets and safer havens. Key risks include a potential Fed policy delay or unexpected inflation data. Traders should monitor upcoming CPI reports and central bank statements for clarity. The S&P 500’s ability to hold above 4,300 and Bitcoin’s performance near $27,000 will be critical technical levels to watch.
