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, the S&P 500 experienced a rapid and unusual 50-point drop between 3:50 PM and 4:00 PM ET, despite the absence of major news events. Shortly after, Amazon (AMZN) shares fell over 6% following the release of a weaker-than-expected Q2 operating income report. Traders should note the heightened volatility and potential for algorithmic trading triggers during late-session trading, especially on days with key earnings reports. Source: The Kobeissi Letter via Twitter.