WALL STREET BREAKS HISTORICAL RECORDS – CASH FLOW IS RETURNING TO THE MARKET
The two most important indices of the US market – S&P 500 and Dow Jones – have just simultaneously reached all-time highs, indicating that global risk appetite is truly recovering.
S&P 500 closed at 6,901 points, surpassing the previous peak and returning to a strong upward trend after several weeks of sideways movement. Dow Jones also surged to 48,704 points, gaining over 600 points in the session and recording a new record.
The momentum comes from the Fed's decision to lower interest rates on 10/12, bringing the cost of capital down to the range of 3.5%–3.75%. The easing financial conditions are causing cash flow to start shifting back to growth assets. As stocks hit new highs, the “risk-on” sentiment spreads throughout the market – and crypto is often the next destination.
If the positive sentiment is maintained, institutional investors may increase their allocation to Bitcoin and altcoins in the coming weeks, especially as ETFs have established a stable cash flow foundation. The resurgence of Wall Street is always an early signal for capital to return to crypto.
A favorable macroeconomic picture is unfolding – and the market may react faster than we think.
