Suspense is mounting ahead of the Fed’s upcoming decision, with unusual options activity indicating a small group of investors are betting on a rate hike.

According to market data from BIT (bit.com), the crypto asset Shan Di fell below the $1,000 threshold during intraday trading, posting an 8.4% intraday decline and a cumulative drop of over 50% in the past month.

Bank of America’s report flags seven persistent risks for stocks in the AI and semiconductor sectors, detailed below: 1. Hardware trading has turned into a "tourist trade" — even medical tour groups are discussing SNDK. Late buyers of MU may still face a washout, while sharp daily volatility is forcing committed bulls to exit positions. 2. Good news no longer moves markets. TSM, ASML, and INTC have declined even after reporting strong earnings, with intraday rebounds consistently met by selling pressure. Capital expenditure cuts by large-scale players will harm AI suppliers, while hikes will pressure free cash flow; financing activities are also stoking funding concerns. Ordinary upside surprises may no longer be enough to drive gains. 3. Investors are bearish on AI labs but still bullish on their infrastructure. Spending by OpenAI and Anthropic is already embedded in suppliers’ backlogs and financial data. Open-source weighted models may eventually boost compute demand, but the transition process is unlikely to be smooth. 4. Token deflation is a double-edged sword. Cheaper tokens can accelerate adoption but will also compress lab profits and intensify hardware and power optimization efforts. More compute power does not automatically translate to higher profits for every supplier. 5. Memory sector estimates may need to be revised downward. Lower valuation multiples alone may not suffice; stocks that appear cheap based on unrevised projections may not actually be undervalued. 6. Credit has entered the stock market debate. Financing for the entire ecosystem has become a "trillion-dollar game of chicken". 7. The sector’s ongoing correction may stem from position and factor adjustments rather than a single fundamental breakdown. Investors will later apply narratives around open-source models, ROI, financing, and optimization to price movements.

Coinbase announced it will list Grvt (GRVT). Users can now generate GRVT deposit addresses on Coinbase’s official website, mobile app, and Coinbase Exchange in supported regions, though deposit functionality will be activated only after the project team unlocks token transfers.

According to Bitget market data, all three major U.S. stock indexes fell by over 1%: the S&P 500’s decline widened to 1%, the Nasdaq is now down 1.3%, and the Dow Jones is currently down 1.6%.

Former senior advisor to the Federal Reserve Jon Foster said he believes the Fed will not raise interest rates today, as he shares the view of FOMC Vice Chair John Williams that "the possibility of gaining a credibility dividend by deliberately surprising the market will not work."

According to Bloomberg data, Bank of America clients remained active buyers of US stocks last week, extending their consecutive buying streak to four weeks. Institutional investors led this trend, logging the largest weekly net purchase since December 2020 — the second-highest level in BofA’s records dating back to 2008. Retail investors also continued buying, while hedge funds posted net selling for the third straight week. The technology, financial, and industrial sectors drew the strongest capital inflows, with the industrial sector seeing record demand after months of outflows. Communication services, energy, and materials sectors were the weakest performers.