MARKET RECAP → Stocks took a tumble on Tuesday with all major S&P 500 (VOO) sector ETFs closing in negative territory. What happened? Financials (XLF) declined sharply due to credit downgrade news, and weak Chinese economic data added to market worries.
BANKING BLUES → 📉 Fitch hints at potential bank downgrades that could shake some of the largest US banks including J.P. Morgan (JPM).
BITCOIN’S BOREDOM BREAKDOWN → Bitcoin’s (BTC) on-chain data reveals investor apathy, but long-term holders remain steadfast.
📉 Fitch Ratings hinted at potential downgrades for over 70 US banks, including industry giants like J.P. Morgan Chase (JPM), if the industry’s score drops from AA to A+.
🚨 This warning follows Fitch’s June assessment cut of the banking sector’s health, which surprisingly didn’t lead to immediate bank downgrades.
📊 Other rating agencies have been active too; Moody’s recently downgraded 10 banks and hinted at possible cuts for 17 more, including big players like Truist (TFC) and US Bank (USB).
Source: shutterstock
BITCOIN BOREDOM
📉 The Bitcoin (BTC) market exhibited signs of “extreme apathy and exhaustion,” with key on-chain indicators hitting all-time lows.
💰 Despite this, over $16 billion in value flowed into Bitcoin this year, albeit at a slower pace than the 2021-2022 uptrend.
📊 Long-term holder supply reached an all-time high of 14.6 million BTC, suggesting strong conviction among Bitcoin investors, while short-term holder supply dwindled.
Source: shutterstock
JULY’S RETAIL RALLY
🛍️ July’s retail sales increase by 0.7%, surpassing the expected 0.4%, with a notable 1% rise when excluding auto sales.
📈 Online retailers experienced a 1.9% spending spike, while sporting goods and eateries saw increases of 1.5% and 1.4% respectively.
⛽ Import prices in July climbed by 0.4%, primarily driven by fuel costs, hinting at persistent inflationary pressures.
Source: shutterstock
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