National Association of Realtors Chief Economist Dr. Lawrence Yun said, “Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability.”
Markets also turned their attention to the Federal Reserve as Kevin Warsh prepared to replace Jerome Powell after Powell’s term ends Friday. Warsh recently backed lower interest rates despite previously earning a reputation as an inflation hawk during the 2008 financial crisis. That shift has fueled expectations that the Federal Reserve could eventually adopt a more market-friendly stance toward liquidity.
Markets are now focused on Tuesday’s U.S. inflation report, which could influence expectations for future interest rate cuts and also affect crypto markets. Economists expect annual inflation to rise to 3.7% from the previous 3.3%, while monthly prices may increase 0.6%. Core inflation could also move higher to 2.7%.
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Crypto Regulation and Global Risks Stay in Focus
Attention later in the week will shift to producer inflation data and fresh signals from the Federal Reserve. Traders will closely watch Wednesday’s PPI report and upcoming Fed remarks for clues about interest rates and market liquidity. Investors are also monitoring earnings from Cisco, Alibaba, and Oklo as earnings season continues.
In Washington, the Senate Banking Committee is expected to discuss the CLARITY Act on Thursday. The proposed bill could help define how the United States classifies digital assets, including whether certain tokens fall under securities or commodities rules.
Friday’s focus will turn to U.S. industrial production data and President Donald Trump’s expected visit to China. Trump is scheduled to meet Chinese President Xi Jinping in Beijing as tensions continue over trade, tariffs, Iran, and rare earth supplies. Analysts believe the meetings could influence oil prices, global equities, and crypto market sentiment in the coming months.
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