Renewed Rate Hike Expectations Deal a Blow to US Stocks and Crypto; Nasdaq Ends Four-Day Winning Streak, Bitcoin Falls Below $85,000

September 24: Overnight and into this morning, unexpectedly strong PMI data sharply increased market bets that the Federal Reserve will maintain a tighter stance for longer, and combined with factors such as uncertainty in U.S.-Iran tensions, U.S. stocks and crypto saw broad declines. The three major U.S. stock indexes initially closed lower, with the Dow down 0.68%, the S&P 500 down 0.75%, and the Nasdaq down 1.1%.

According to BIT (bit.com) market data, among standout stocks, SK Hynix fell 3%, Meta rose 1%, and Amazon fell 2%.

Among crypto stocks, Securitize, benefiting from the SEC's stock token exemption policy, once again surged against the trend by 10.46%, while other crypto treasury companies saw varying degrees of decline, with MSTR down 3.07%, BMNR down 4.52%, and BNC down 3.63%.

Wednesday's PMI data far exceeded expectations, marking the fastest pace of expansion since 2021. As a result, the 10-year U.S. Treasury yield rose 14 basis points in a single day, breaking through the 5.00% mark; the 5-year yield rose during the session to its highest level since 2007, while the 30-year yield climbed to its peak since 2004. The interest rate swap market has fully priced in three rate hikes over the next year, and some hedging positions even reflect the possibility of a fourth hike.

Separately, according to HTX market data, Bitcoin accelerated its sharp decline after the U.S. stock market opened yesterday, briefly falling below $84,000, and is now quoted at $84,417.10.