The overnight market is indeed making people clench their fists; US stocks and crypto both slumped in tandem, pressured by geopolitical tensions layered with the Fed’s hawkish expectations, leaving risk assets cooling off across the board.

All three major US stock indexes closed lower across the board, with the Nasdaq down 2.15%, the most pronounced decline, as tech stocks became the worst-hit sector. Tesla plunged more than 14% in a single day, with its market value shrinking sharply, and major tech companies such as Google also fell in step. Sector-level differentiation was clear: most AI and high-multiple chip stocks saw funds dumped, while only Intel managed to stage a rebound after hours thanks to a better-than-expected earnings report, making it one of the few bright spots in the market. The root cause of the selloff is easy to understand: ongoing escalation of the Middle East conflict pushed up international oil prices, and the market worried that inflation could rebound again. At the same time, the probability of rate hikes at the Fed’s July meeting has risen, and the tightening pressure of the high-rate environment on high-valued tech stocks has been maximized.

On the crypto side, the price action closely followed the US stock rhythm. Bitcoin slipped to below $65,000, with Ethereum moving down as well, while smaller-cap coins saw deeper declines. Although the US crypto regulatory bill “Clear Act” is expected to move forward and provide long-term support to the market, short-term macro negatives completely outweighed policy positives. Institutional risk-hedging sentiment is strong; many funds exited crypto assets and shifted to holding US dollars, leaving the market in a narrow, choppy, and weakening pattern. Interestingly, not long ago there was a “seesaw” effect between the stock market and the crypto space; now, as macro panic sentiment spreads, both types of risk assets are pulling back together, and their correlation has increased markedly.

Let me briefly outline the current trading approach. For US stocks: don’t rush to bottom-fish high-end tech and AI chips. With inflation and interest rates still hanging in the balance, there won’t likely be a sustained rebound in the short term. You may focus on watching hardware leaders with earnings that beat expectations. For crypto: only suitable to take a light-position approach in Bitcoin and Ethereum—the two main coins. The risk of altcoins with extremely high volatility is too high, so try to avoid them as much as possible.

Overall, uncertainty in the market is at its peak right now. Geopolitical conflicts, Fed policy, and corporate earnings are all able to stir up the trading landscape at any time; watching more and moving less, and controlling position sizing, is the safer choice.
#夏日创作营 $BTC ‌ ‌