Headline: Crypto Slump Deepens as Stocks Diverge; Tariff Cuts Point to Consumer Price Relief
Introduction: Digital assets fell sharply while U.S. equities delivered a mixed finish, as investors weighed fresh tariff reductions on key food imports, a pivotal jobs report, and shifting expectations for Federal Reserve policy in December.
The crypto market extended its pullback, with Bitcoin down about 9% for the week and briefly slipping below $95,000. Ethereum fell roughly 11% and Solana slid 15%, underscoring a risk-off tone across digital assets as momentum cooled. Shares tied to Bitcoin exposure were also weaker, with MicroStrategy off around 4%. Traders continue to monitor the interest-rate path, inflation risks, and potential government funding turbulence for clues on near-term market direction.
Equities were split by the close, reflecting caution ahead of new economic data. The Dow Jones Industrial Average shed 309 points (–0.65%), while the Nasdaq inched higher by 30 points (+0.13%). In corporate moves, DoorDash climbed about 6% on a new delivery partnership with Old Navy, Bristol Myers Squibb dropped 4.1% following a clinical trial halt, and Micron gained 4.2% on sustained demand for AI-related chips.
On the policy and macro front, new tariff reductions on beef, coffee, and tomatoes suggest potential relief for consumer prices, with the coffee levy cut from 50% drawing particular attention. Markets are also bracing for the September employment report, with consensus pointing to roughly 65,000 new jobs and a 4.3% unemployment rate. Meanwhile, a senior Fed official signaled caution on a December rate cut, keeping the odds near an even split as inflation remains the key risk.
Key Points: – Bitcoin slides below $95,000; weekly losses: BTC –9%, ETH –11%, SOL –15% – MicroStrategy falls about 4% amid broader crypto weakness – Dow –309 points (–0.65%); Nasdaq +30 points (+0.13%), a mixed equity session – DoorDash +6% on Old Navy partnership; BMS –4.1% after trial halt; Micron +4.2% on AI chip demand – Tariff cuts on beef, coffee, tomatoes could ease consumer prices, notably with coffee’s 50% levy reduced – Jobs report expected to show ~65,000 hires and 4.3% unemployment; Fed seen split on a December rate cut
