TechFlow reports, according to Forexlive analyst Adam Button, that the crypto market is usually a leading indicator of equity market sentiment—but not today. Bitcoin dropped 3%, while stock markets are near their daily highs, with the Nasdaq-100 up 2.5%. This divergence may be tied to concerns in the crypto market over the Mt. Gox liquidation and distribution.
In any case, the Nasdaq is now nearly back to its closing level on July 31. At that time, the Federal Reserve's decision triggered a sharp rebound in the Nasdaq, followed by a brutal global market crash.
The Nasdaq's rally since last Monday has been remarkable—especially when compared to its intraday low on August 5, representing a 12% gain. For most fund managers, that would constitute a generous full-year return. Part of this rally has been driven by renewed interest in AI-related trading, but the main driver has been restored confidence in the health of global economic growth.
