U.S. stock indexes rise 0.6%-1.1% on Fed easing, crypto-linked stocks diverge as Tesla tumbles 4.42% post-earnings

The three major U.S. stock indexes closed higher on Wednesday, with the Dow Jones Industrial Average rising 1.1%, the S&P 500 gaining 0.78%, and the Nasdaq Composite advancing 0.6%. Despite the broad-market optimism, cryptocurrency-related stocks exhibited divergent performances, reflecting ongoing uncertainty in the sector. Tesla (TSLA.O) edged up 0.14% during regular trading but plummeted 4.42% in post-market activity following Elon Musk’s warning about potential “several quarters of poor performance” as U.S. subsidies for the company phase out. The Q2 2025 revenue forecast of $22.496 billion marked a decline from $25.5 billion in the same period last year [1].

Other crypto-linked equities showed mixed results. Bit Digital (BTBT) and Circle (CIRCLE) bucked the downward trend, rising 2.75% and 2.07%, respectively, while Bitmine Immersion (BMNR) and SharpLink Gaming (SBET) fell sharply by 2.06% and 5.8%. Coinbase (COIN.O) and MicroStrategy (MSTR.O) also declined, with trading volumes exceeding $48 billion and $53.69 billion, respectively, underscoring heightened volatility in the sector [1].

The divergence highlights the challenges facing crypto-related firms amid shifting regulatory and macroeconomic conditions. While Tesla’s post-earnings dip underscored investor skepticism about its long-term profitability in a post-subsidy environment, the gains in Circle and Bit Digital suggested lingering confidence in digital asset infrastructure. Analysts noted that market participants remain cautious, with trading volumes in crypto stocks spiking to multi-billion-dollar levels, indicating active speculation and position adjustments [1].

The broader equity rally, however, appeared driven by easing inflationary fears and a dovish Federal Reserve outlook. Investors may be parsing upcoming economic data to gauge the pace of monetary tightening, with the crypto sector’s fragmented performance reflecting its sensitivity to macro shifts. As market participants await further clarity, the mixed fortunes of crypto-linked stocks underscore the sector’s ongoing struggle to balance innovation-driven optimism with regulatory and operational headwinds.

Source: [1] [title: The three major U.S. stock indexes closed higher yesterday, while prices of cryptocurrency-related stocks varied.] [url: https://www.theblockbeats.info/en/flash/304236]