Headline: Markets Split: Rate-Cut Hopes Lift Stocks as Crypto Slide Deepens
Key Takeaways
The market opened the week on a mixed footing, with rate-cut optimism supporting equity futures even as cryptocurrencies extended a sharp sell-off. Investors are balancing upbeat corporate updates and selective growth stories against elevated valuations and mounting volatility across risk assets.
Equities: Hopes for a Federal Reserve rate cut buoyed futures, though performance was uneven under the surface. Nvidia wavered despite recent results, while retail and software saw bright spots—Gap jumped around 7% on strong sales momentum and Intuit gained roughly 4% on AI-driven upside. Valuations remain a key talking point: the CAPE ratio near 38.6 is stoking bubble concerns, even as AI-linked names have dramatically outperformed the broader S&P 500. Low-volatility stocks such as TMHC (about 9x P/E), HMN (near 1.3x P/B), and RBCAA (around 1.2x P/B) may lag in a risk-on tape, while company-level fundamentals continue to separate winners from laggards. ENVA stands out with approximately 22.7% revenue growth and an 8.5x P/E, and LC posted about 24.7% growth. By contrast, ADI and GIC face softer sales and weaker returns, SSTK’s revenue per request fell about 15.1% with sales projected to decline, and AIZ continues to trail peers on growth.
Digital assets and commodities: Bitcoin extended a two-week slide, falling roughly 15% and erasing about $400 billion in crypto market value as XRP and DOGE also dropped. Traders are watching the $80,000 area as a potential support while liquidations pick up. In commodities, rice futures notched modest gains, with the January 2026 contract up about 0.25% to $10.055 amid light volume and declining open interest.
Key Points – Equity futures firm on Federal Reserve rate-cut expectations; performance remains uneven across sectors. – Valuation worries persist as the CAPE ratio hovers near 38.6; AI stocks have vastly outpaced the S&P 500. – ENVA posts about 22.7% revenue growth at roughly 8.5x P/E; LC delivers around 24.7% revenue growth. – ADI and GIC contend with sales pressure and lower returns; SSTK’s revenue per request down about 15.1%, AIZ lags on growth. – Bitcoin slides roughly 15% on the week; market cap drawdown near $400B with XRP and DOGE under pressure. – Rice futures edge higher; Jan ’26 contract up 0.25% to $10.055 on light volume and lower open interest.
