More companies are jumping on the Bitcoin bandwagon, with the latest one being Trump's media company, which just dumped about $2 billion into Bitcoin, accounting for two-thirds of their liquid assets. In fact, this approach went from 79 public companies holding Bitcoin to 125 in just one quarter, sitting on over 847,000 Bitcoin worth about $91 billion total. MicroStrategy is still the king in this space with over 600,000 Bitcoin worth more than $72 billion, and their stock is up over 3,500% since 2020, although it is their main business to turn debt into crypto. Trump Media's stock popped 5.6% when they announced their buy, and with Bitcoin hitting new highs above $118,000, it's a no-brainer move that anyone could copy. It's not just about making money, though – companies see Bitcoin as protection against inflation and a way to avoid getting cut off from traditional banking if they fall out of favour. With Trump back in office signing crypto-friendly laws and talk of a national Bitcoin reserve, expect way more companies to follow suit since the corporate world is realising Bitcoin isn't going anywhere.
EQUITY
Corporate earnings season saw the S&P 500 and Nasdaq hitting record highs Monday, with gains in Alphabet and other megacaps, while smaller caps were lower. Alphabet were 2.7% higher, while strong Verizon results lifted sentiment for Big Tech earnings despite tariff threats looming. Investors focus is on Fed Chair Powell’s speech, with a September cut seen as likely.
GOLD
Gold traded near a five-week high above $3,380, supported by a weaker dollar and falling Treasury yields, while futures for August delivery hit $3,407, the highest since June 18, as markets reacted to Trump’s tariff threats against the EU and speculation over Fed independence. Investors now await EU-US trade outcomes and central bank signals for further direction.
OIL
Escalating US-EU trade tensions and growing signs of rising crude supply pushed crude prices lower, with WTI closing 1% lower on Monday. Fears of slower global growth and weaker demand are outweighing support from a weaker dollar, while easing Middle East tensions have reduced supply risk. OPEC+ is ramping up production, and Saudi exports hit a three-month high, adding to oversupply concerns. Meanwhile, new EU sanctions on Russian-linked Indian refiners may disrupt fuel flows, raising risk and trade costs.
CURRENCY
Europe’s export-driven companies are feeling the pain of a stronger euro, with firms like SAP warning of significant revenue hits. Investors are watching closely for signs of how trade uncertainty ahead of the U.S.'s August 1 tariff deadline is impacting corporate profitability across Europe. While Wall Street’s strong earnings provide some support for sentiment, concerns over U.S.-EU tariffs and the euro’s strength are key obstacles.
