Nasdaq weak, Dow Jones rolling

Frank Walbaum

lmportant news this week:

Wed, 29th Jul, 03:30 CET AU Consumer Price Index.
Wed, 29th Jul, 20:00 CET US FOMC Interest Rate Decision.
Thu, 30th Jul, 13:00 CET UK BoE Interest Rate Decision.
Thu, 30th Jul, 14:30 CET US PCE Price Index.
Fri, 31st Jul, tentative JP BoJ Interest Rate Decision.

Dollar strength fuels rotation away from tech

The US Dollar is strengthening again, adding pressure across risk assets and accelerating a rotation within equity markets. Technology stocks have started to underperform, with the Nasdaq turning lower after its recent rally. The S&P 500 is also losing momentum, while the Dow Jones continues to outperform as investors rotate into more defensive and industrial sectors. European markets remain relatively resilient, with the DAX benefiting from stronger industrial and export-oriented companies.
The current market environment suggests capital is rotating away from high-growth AI and technology names toward more traditional sectors. A stronger Dollar is adding to the pressure by tightening financial conditions and weighing on global liquidity. Precious metals have also turned lower, as Dollar strength offsets safe-haven demand. In cryptocurrencies, the weakness in technology shares is spilling over into digital assets. Bitcoin has slipped back below the $65,000 level, Ethereum is holding relatively firm above $1,870, while XRP is approaching the important $1.00 support area. A break below this level could trigger additional downside momentum across the broader altcoin market.

Market talk

Sector rotation has become the dominant theme. Rather than broad market selling, investors are reallocating capital from AI and growth stocks into industrials, value shares, and defensive sectors. If the US Dollar continues to strengthen, this rotation could intensify and place further pressure on technology stocks, cryptocurrencies, and precious metals. Traders will be watching whether the Nasdaq breaks additional technical support levels, as this could accelerate selling across other risk-sensitive assets.

Tendencies in the markets

Equities correcting, USD stronger, crypto weak, oil sideways, Silver weak, Gold weak.

Author

Frank Walbaum

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY retreats below 157.00 as Ueda speaks on outlook

USD/JPY reverses the uptick to two-week highs near 157.30 in the European session on Friday as the Japanese Yen finds some respite from BoJ Governor Ueda's comments at the post-monetary policy meeting press conference. Earlier in the day, the central bank hiked the interest rate to 1.25%, with a surprise 7-2 vote.

Gold advances to fresh weekly top; eyes $$4,400 as softer US bond yields cap USD gains

Gold attracts some follow-through buying for the second straight day, and touches a fresh weekly high heading into the European session. US bond yields retreat further from multi-year highs as the recent pullback in crude oil prices helped alleviate immediate fears of runaway inflation. This caps gains for the US Dollar and supports the bullion.

Bitcoin extends recovery, Ethereum eyes $2,500, XRP holds $1.30

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery, trading above $76,700, $2,400 and $1.300, respectively, on Friday. These top three cryptocurrencies now face key technical levels that could determine whether their recoveries extend further or pull back.

Cardano extends gains on bullish derivatives

Cardano (ADA) extends its recovery, trading above $0.210 at the time of writing on Friday, after finding support around a key zone earlier this week. Improving derivatives positioning and supporting technical indicators indicate growing bullish sentiment among ADA traders. Derivatives data shows a bullish tilt among Cardano traders.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.