Nasdaq up 0.7% Weekly as Fed Holds Rates Steady
Nasdaq gained 0.7% for the week while the Dow fell 1.7%. Bitcoin rose on new SEC rules.
Key points
- Nasdaq Composite gained 0.7% for the week while the Dow Jones fell 1.7%.
- Bitcoin rose 5% weekly after the SEC approved trading in tokenized stocks.
- The Federal Reserve raised rates to 3.75%-4.00%, its first increase since 2023.
The Nasdaq Composite recorded a 0.7% weekly gain, outperforming broader market weakness. This rise occurred despite the Dow Jones Industrial Average falling 1.7% for the period. The S&P 500 ended the week with a 0.1% decline.
The Federal Reserve raised rates to the 3.75%-4.00% range last week. This was the first increase since 2023. Market sentiment improved slightly, with the Fear and Greed index moving from 28 to 29.
Fed hawks defend rate increases
Kansas City Fed President Jeffrey Schmid defended the rate hike decision. He cited sticky inflation remaining above the 3% target. This hawkish stance kept pressure on traditional equity sectors during the week.
U.S. industrial production remained unchanged in August, missing estimates of a 0.3% rise. The CB Leading Index declined 0.1% month-over-month. These weak data points contributed to the mixed performance of major indices.
Bitcoin surges on regulatory approval
Bitcoin extended a 5% weekly advance after the SEC granted an innovation exemption. This rule change enabled trading in tokenized stocks. Strategy Inc. surged 16% as a levered proxy for the asset.
Bitmine Immersion Technologies climbed 9% on the same digital-asset treasury trade. Information technology and industrials sectors also closed higher on Friday. These gains contrasted with losses in utilities and real estate stocks.
Sentiment remains in fear zone
The CNN Money Fear and Greed index showed a slight improvement. It moved from 28 to 29 on Friday. The index remains in the Fear zone, indicating cautious investor positioning. Benzinga reported that major indices recorded a mixed week overall.
