Intraday Rebound of the Three Major U.S. Stock Indexes, Dow Turns Positive

August 21st: Following the release of the Federal Reserve meeting minutes at 2:00, the crypto market witnessed a downturn. Bitcoin fell below $114,000, experiencing a short-term decline of 0.41%. Ethereum also dropped below $4,300, with a short-term decline of 1.35%.

August 21st: The minutes of the Federal Reserve's July meeting were released. It was mentioned that the recent stock price hikes and the narrowing of credit spreads suggest that the market believes the overall U.S. economy remains strong. Nevertheless, the financial markets seem to have begun to distinguish among firms based on the scale and quality of their earnings. The valuation of the S&P 500 index remains above its long-term average level mainly because the market is optimistically expecting that large technology companies may gain potential benefits from the further application of artificial intelligence (AI). However, although the valuation of the small-cap stock index has increased during the intermeeting period, it is still below the historical average level. (FXStreet)

August 21: Minutes from the Federal Reserve Meeting: Certain participants pointed out that it is neither feasible nor appropriate to wait until the impact of tariffs on inflation becomes fully evident before adjusting monetary policy. Most officials held the view that the Federal Reserve's policy was already in a favorable stance. Participants also noted that it would require time to obtain a more clear understanding of the magnitude and persistence of the impact of high tariffs on inflation. The Federal Reserve staff reduced their inflation expectations compared to the June meeting, yet they still anticipate that tariffs will lead to a rise in prices. (FXStreet)

On August 21st, based on market data, the Ethereum Reserve concept stocks in the US stock market showed a rebound. These include: - SharpLink Gaming (SBET.US), which rose by 4.90%; - Bitmine Immersion Technologies (BMNR.US), with an increase of 4.92%; - BTCS (BTCS.US), increasing by 6.15%; - GameSquare (GAME.US), which went up by 1.04%; - Bit Digital (BTBT.US), with a rise of 1.10%.

On August 21st, Minutes of the Federal Reserve Meeting: Several participants suggested that the current target range for the federal funds rate might not be far from the neutral level. The officials' projections for real GDP from 2025 to 2027 are similar to those prepared for the June meeting. In the Fed's July meeting, almost all participants believed that maintaining the benchmark interest rate within the range of 4.25% to 4.50% was appropriate. (FXStreet)

August 21st. In the minutes of the Federal Reserve meeting, participants pointed out that the impact of tariffs had become more evident in commodity prices. However, the overall effect of tariffs on the economy and inflation still remained to be observed. (The Golden Ten)