Bitcoin lags as Dow Jones jumps 537 points, as earnings and cheap oil sales offset chips
The Dow Jones Industrial Average rose on Tuesday as strong corporate earnings, lower oil prices and a shift away from semiconductor stocks pushed money to other corners of the market.
The Dow Jones Index rose 537.24 points, or 1.03%, to close at 52,747.32 points, achieving its third consecutive gain.
The S&P 500 rose 0.21% to 7,428.78, while the Nasdaq Composite fell 0.22% to 24,876.91, as technology stocks continued to decline.
The VanEck Semiconductor ETF (SMH) fell more than 3%, marking its fourth straight losing day. Both Micron Technology (MU) and Advanced Micro Devices (AMD) fell more than 8%.
Lower oil prices helped support the broader market after Iran discussed the Strait of Hormuz issue with Saudi Arabia and Oman. West Texas Intermediate crude fell about 4% to settle at $79.26 a barrel, while global benchmark Brent crude fell 4.8% to $84.09.
Investors are now awaiting the Federal Reserve’s interest rate decision, which is largely expected to keep its benchmark lending rate steady, though persistent inflation makes the outlook for the rest of the year more uncertain.
The reservation is not fully priced in the market. The CME FedWatch tool shows a roughly 30% chance of a 25 basis point rate increase, compared to about 15% one week ago.
Meanwhile, Bitcoin is showing some of the clearest signs yet that it may be forming a long-term bottom after months of weakness. The cryptocurrency has been trading around the $60,000 level for about two months after falling below $70,000 at the beginning of June.
It is still about 50% below October’s record high of about $126,000. Bitcoin’s advance towards $83,000 in May was seen as an opportunity to reduce exposure before another period of longer-term weakness. Since then, the price has stabilized above $58,000 after giving up about 60% of the gains recorded during the rally from 2022 to 2025.
Wolf Research analyst Reed Harvey said Bitcoin remains in a broader downtrend and expects the recent move towards $65,000 to lose momentum before another decline.
“The price remains in a clear downtrend below the bearish 200-day moving average, which it has failed to clear since its loss in November,” Reed told CNBC.
“We expect this latest stretch of relief to eventually stall below the 200-day moving average and then reverse to lead to a new low – as we have already seen several times this year.”
The reading also follows the view that Bitcoin moves in a four-year cycle, historically consisting of three up years followed by one down year. Given this pattern, it is believed that the cryptocurrency may fall below $40,000 in October before hitting the bottom.
