The stock market roared higher last week, with crypto and traditional market investors closely watching as broad U.S. indexes posted their strongest gains in months. The S&P 500 climbed 2.4%, adding roughly $850 billion in market value, while the Nasdaq 100 surged 3.7% to a new record high. The rally, fueled by mega-cap tech stocks like Apple and Nvidia, served as a reminder that traditional equity markets continue to influence sentiment in digital assets.
Apple led the charge, adding an eye-popping $400 billion in market cap. The company pledged an additional $100 billion in U.S. investment — a strategic move that may help circumvent potential tariffs on iPhones manufactured in India. Nvidia also posted strong gains, further cementing its role as a dominant AI and chip play — a trend that has drawn strong interest from both institutional and retail crypto investors seeking exposure to AI-focused blockchain use cases.
The rising optimism came on the heels of a disappointing July jobs report that raised alarm over consumer strength and economic resilience. However, dovish commentary from Federal Reserve officials helped cool fears, with traders now pricing in higher odds of a rate cut as early as September. Lower interest rates typically act as a tailwind for risk assets like Bitcoin and Ethereum, as investors search for higher-yield opportunities in decentralized finance (DeFi).
Despite the bullish headlines, market internals tell a more nuanced story. Beneath the surface, several S&P 500 constituents suffered deep losses, including Eli Lilly (-18%), ON Semiconductor (-16%), and Trade Desk (-37%). According to Bank of America, companies missing both revenue and earnings expectations faced stock declines more than triple the 25-year average — a sign of fragile investor confidence amid stretched valuations.
For the crypto market, these cross-sector dynamics underscore the importance of macroeconomic trends. Bitcoin and Ethereum remain range-bound despite the stock rally, indicating that enthusiasm in TradFi hasn’t fully spilled over into digital assets — at least not yet.
With August typically marked by volatility and the potential for regulatory shifts in crypto policy, investors are watching closely. From rising bets on a Fed pivot to tariff concerns that could reshape global supply chains, the weeks ahead may set the tone for both equity and crypto markets heading into Q4.
As DeFi platforms continue evolving and altcoins search for momentum, expect heightened sensitivity to broader economic indicators — and keep an eye on how Bitcoin and Ethereum react to the next moves out of Washington and Wall Street.
