According to The Kobeissi Letter, the S&P 500 fell back below 5600 in the immediate aftermath of the latest Federal Reserve decision, erasing gains made after the announcement of renewed US-China trade talks (source: @KobeissiLetter, May 7, 2025). Additionally, former President Trump stated he is not seeking 'so many tariff exemptions,' which may signal trade tensions could persist. For crypto traders, this sudden reversal in the stock market suggests increased uncertainty and risk aversion in broader financial markets, often leading to higher volatility in major cryptocurrencies as investors react to shifting macroeconomic sentiment.

According to The Kobeissi Letter, US equity market futures experienced a notable decline as traders positioned themselves ahead of anticipated trade deal progress and the upcoming Federal Reserve decision scheduled for Wednesday (Source: @KobeissiLetter, May 5, 2025). This heightened volatility signals caution for crypto and traditional market participants, as both asset classes often react to major macroeconomic events and central bank policy shifts. Traders are closely monitoring equity futures for potential spillover effects into Bitcoin, Ethereum, and other digital assets, with risk sentiment expected to remain elevated until clarity emerges from the Fed and trade negotiations.