Market Momentum Deepens — Small Caps, Tech & Crypto Rally Together

Stocks Surge as Fed Pivot Nears: Is the Bull Truly Back?

On August 5, 2025, U.S. markets added over $1 trillion in market value, with the Dow up ~500 points, S&P 500 gaining ~1.2%, and Nasdaq rising ~1.6%, largely on weak jobs data driving expectations of a Fed rate cut as early as September The Financial Express+1.

Five pillars identified by veteran strategist Jim Paulsen could further fuel market upside: falling yields, weaker dollar, rising consumer confidence, easing liquidity, and renewed corporate earnings momentum MarketWatch.

Small-cap stocks led once again, suggesting broadening market breadth—a key indicator for sustainable market rallies F N London+15TradingView+15The Financial Express+15.

Crypto Keeps Pace — Riding Stock Market Tailwinds

Digital assets didn’t lag: Bitcoin ticked up to ~$114,400, Ether climbed ~2.1% hitting $3,627, and altcoins like XRP, Solana, and Dogecoin delivered solid gains as crypto funds posted steady annual returns despite earlier volatility Barron’s.

Crypto hedge funds Fasanara Digital and Edge Capital extended 2025 gains, reinforcing growing institutional confidence across crypto and equities TradingView+15F N London+15Yahoo Finance+15.

What’s Driving Today?

Fed Pivot Expectations: Odds of a September rate cut now exceed 90%, fueled by revised jobs data that showed slowed labor growth and a cooling economy Reuters+11Coinfomania+11CoinCentral+11.

Earnings Optimism: Companies like Palantir, Pfizer, and DuPont delivered better-than-expected results, reinforcing bullish sentiment in tech and healthcare stocks The Times.

Trade Tensions: Despite new U.S. tariff threats on semiconductors, pharmaceuticals, and Indian goods, markets brushed off geopolitical risk in favor of near-term monetary relief and strong corporate data The Wall Street Journal+2The Times+2.

SCN Takeaways

The bull may well be back: As rate-cut expectations rise and liquidity returns, market breadth is expanding beyond megacaps—small caps are reclaiming leadership.

Crypto and equity alignment: Bitcoin and Ethereum are trading in sync with stocks, as risk-on sentiment dominates across asset classes.

Keep an eye on triggers: Fed commentary, trade policy changes, or weaker-than-expected earnings could shift the momentum quickly—but for now, the risk-on trade is alive.

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#SCN #StockMarketToday #SmallCaps #TechRecovery #FedRateCut #BullMarket #CryptoRally #Bitcoin #Ethereum #EconomicSentiment #Russell2000 #Palantir #TradingAlert