Bitcoin Hits Record Above $100K as Fed Cut Bets Rise

Bitcoin surged past $100,000, supported by expectations of US interest rate cuts and strong institutional inflows, while ether hovered near its highest level since November 2021. In the US, the S&P 500 closed 0.32% higher, the Dow gained 1.04%, and the Nasdaq rose 0.14%, with Apple up 1.6% and CoreWeave down nearly 21%. In the UK, the FTSE 100 added 0.2%, lifted by healthcare stocks, while Beazley slumped 12.3% after lowering its premium growth forecast.

Equities

Britain’s FTSE 100 closed 0.2% higher on Wednesday, marking a one-week peak and extending its run of gains to a third consecutive session. The mid-cap FTSE 250 ended the day flat. Healthcare led the UK market, with the sector index up 2.7%.

Beazley fell 12.3% in its steepest one-day drop in nearly five years after the insurer cut its annual premium growth forecast. The company cited weaker demand for cyber and property risk cover. On the FTSE 250, Hill & Smith rose 10.2% after reporting half-year results and announcing a share buyback programme.

In the United States, the S&P 500 gained 0.32% to close at 6,466.58, the Nasdaq Composite rose 0.14% to 21,713.14, and the Dow Jones Industrial Average climbed 1.04% to 44,922.27. The Russell 2000 index advanced almost 2% to a six-month high.

Apple shares rose 1.6% after Bloomberg reported the company is working on AI-powered home robots, security devices and smart displays. Nvidia, Alphabet and Microsoft ended the day lower as investors sought other growth drivers following recent strong gains. CoreWeave, an AI data centre operator backed by Nvidia, dropped almost 21% after reporting a larger-than-expected second-quarter net loss.

Healthcare stocks were among the best-performing S&P 500 sectors on Wednesday, up 1.6%, after a year of weaker trading. Paramount Skydance surged 36.7% after securing exclusive broadcasting rights to the Ultimate Fighting Championship for the next seven years.

Market breadth on the NYSE was strong, with advancing stocks outnumbering decliners by more than four to one and 630 shares hitting new highs. On the Nasdaq, gainers outpaced losers by over two to one, with 149 shares reaching 52-week highs.

Forex & Commodities

The US dollar fell to 146.35 yen early on Thursday, its weakest level since 24 July, after US Treasury Secretary Scott Bessent said the Bank of Japan should raise interest rates soon while the Federal Reserve should cut aggressively. Sterling edged higher to $1.359, its strongest since 24 July, while the euro held at $1.170, just below Wednesday’s two-week peak. Bessent said the Fed could begin a “series of rate cuts” with a 50-basis-point move in September, while traders now see a quarter-point cut on 17 September as almost certain. The Australian dollar rose to $0.6569 after jobs data showed stronger-than-expected hiring in July.

Spot gold was up for a third straight session early on Thursday, rising to $3,357 per ounce, supported by a softer dollar and expectations of a September Fed rate cut following subdued US inflation data. US 10-year Treasury yields stayed near a one-week low. Capital.com’s Kyle Rodda said the technical outlook remains strong, with a sustained move above $3,400 seen as the next target. Spot silver was steady at $38.49, platinum eased to $1,336, and palladium gained to $1,135.9.

Oil prices rose on Thursday morning amid concerns over Russian supply ahead of Friday’s US-Russia summit in Alaska, where President Donald Trump is set to meet Vladimir Putin. Brent crude was up to $66.08 per barrel and US West Texas Intermediate to $63.09. Gains followed Trump’s warning of “severe consequences” if Russia does not agree to peace in Ukraine, with the prospect of secondary sanctions on buyers of Russian oil.