Safe-Haven Demand Lifts Treasuries, But Gold Fails to Rebound and Hits New Lows

Market Overview

Yesterday, tech stocks faced a sharp selloff, dragging down U.S. equities. The Nasdaq plunged more than 1%, marking its second-largest single-day drop since Aprils tariff shock. The S&P 500 also closed lower for a third consecutive session.

Risk-off sentiment fueled a rebound in U.S. Treasuries, with yields snapping a three-day rise. The 10-year yield retreated from its two-week high. The U.S. Dollar Index fluctuated, briefly turning negative intraday. In crypto, Bitcoin tumbled below $113,000 while Ethereum fell more than 6%.

In commodities, oil prices pulled back over 1% as markets monitored progress in preparations for Russia–Ukraine talks, with U.S. crude settling at a two-month low. Golds attempted rebound faltered, sliding to its lowest level in more than two weeks.

Hot Topics Ahead

● Markets Betting Big on Powells “Dovish” Pivot

This week, open interest in September options pricing in a 50-basis-point Fed rate cut surged to 325,000 contracts, with premiums totaling roughly $10 million and potential profits exceeding $100 million. Powells speech on Friday will be a key test of this aggressive easing wager. Currently, traders assign about an 80% probability of a 25-basis-point cut in September.

● Crypto Market Correction Underway？

As investors exit tech and high-risk assets, crypto-related stocks slumped on Tuesday. Shares of Coinbase, Circle, and Robinhood each dropped more than 5%, while crypto treasury firms were hit even harder. Bitcoin briefly slid below $113,000, with Ethereum falling more than 6%. Attention now turns to the Feds Jackson Hole symposium, where a dovish tone from Powell could spark a rebound in digital assets.

Key Events to Watch (GMT+8)

22:30 – U.S. EIA Weekly Crude Oil Stocks (week ending Aug 15)

23:00 – Fed Governor Waller speaks at the Wyoming Blockchain Symposium

02:00 – FOMC releases minutes of latest monetary policy meeting

03:00 – Atlanta Fed President Raphael Bostic (2027 FOMC voter) speaks on the economic outlook