What happened
US major indexes closed higher Thursday: the Dow rose 1.18%, the Nasdaq Composite 1.40%, and the S&P 500 1.06%, with big tech stocks all advancing.
BTC topped $80,000 with a 24-hour gain of over 5%, boosting crypto-linked names like Strategy, Robinhood and Circle and causing wild swings in related 2x leveraged ETFs — top gainers included MSTC (+35.19%) and MSTP (+35.00%).
A hawkish-dovish Fed signal from Governor Waller cooled rate-hike expectations, while Snowflake's bullish earnings report and a weaker dollar helped lift gold and silver ETFs, with NUGT up 7.97% and AGQ up 5.07%.
Why it matters
The sharp moves in leveraged single-stock ETFs on Thursday highlight how sensitive markets have become to Fed commentary and Bitcoin price swings.
Strength in precious metals ETFs alongside a softer dollar suggests investors are repositioning for a potentially less aggressive Fed and greater risk appetite.
Key facts
Fed Governor Waller's dovish tone lowered market expectations for September rate hikes and pushed Treasury yields lower.
Bitcoin broke above $80,000, rising over 5% in 24 hours.
Gold and silver advanced as the dollar index weakened, driving gold-mining and silver ETFs up sharply.
The biggest ETF losers were 2x inverse MSTR funds: SMST fell 35.12%, MSTZ fell 34.71%.
What to watch next
Watch whether Bitcoin holds above $80,000, as further momentum could prolong volatility in crypto-related leveraged ETFs.
Pay attention to upcoming Fed speeches to see if the dovish signal from Governor Waller persists and continues to support high-beta growth stocks.
Monitor dollar and yen moves, which could keep driving precious metals ETF performance in the near term.