- Rate cut odds surged to 52.4% as market anticipates Fed easing in May
- Tech stocks plunge sharply; Nvidia and Tesla lead premarket sell-off slide
- Crypto liquidations hit $1.38B, signaling extreme oversold conditions ahead
Market sentiment shifted dramatically as investors began to price in a greater chance of a Federal Reserve rate cut in May. According to Seth, an analyst analysis, as of April 7, 2025, there is a 52.4% probability that the Fed will reduce its benchmark rate to a 400–425 basis point range. This would mark a decline from the current 425–450 basis point range. The remaining 47.6% of market participants still expect the Fed to hold rates steady.
Notably, no investors are anticipating a rate hike at the upcoming meeting. This development indicates growing expectations of monetary easing as macroeconomic risks increase. Just a day earlier, the probability of a cut stood at 33.3%, and only 14.0% a week ago. Hence, this sudden spike reflects a fast-changing outlook, especially amid recent market stress.
🚨🚨🚨🚨🚨
— Seth (@seth_fin) April 7, 2025
BREAKING! 52.4% chance for an interest rate cut in May.
The odds for a cut in May just jumped.
This is bullish news for the long term.#stockmarketcrash https://t.co/qyN13g2u6g pic.twitter.com/GKBw0fwkOu
Tech Giants Drop Sharply
Equity markets opened lower, led by steep premarket declines in large-cap tech stocks. Nvidia dropped 6.98%, while Apple and Google fell 4.55% and 4.38% respectively. Amazon and Meta were also under pressure, losing 4.84% and 5.35%. Tesla led the downside with a 9.65% loss. Microsoft declined by 4.02%. These sharp moves signal widespread investor caution.
Besides, concerns around rising tariffs added further strain to risk sentiment. In Europe, the DAX index pulled back, snapping its nearly uninterrupted run since early 2024. Analysts had warned of an unsustainable uptrend, and the correction now appears to be unfolding. A relief rally later this week remains a possibility as markets attempt to stabilize.
Record $1.38B in Liquidations Point to Oversold Conditions
The cryptocurrency market witnessed extreme volatility, triggering a record $1.38 billion in total liquidations over 24 hours. A total of 446,189 traders were wiped out during this period. Long positions made up the bulk of the losses, totaling $1.21 billion, while short liquidations stood at $170.51 million.
🚨 #Bitcoin at 75K 🤯
— Seth (@seth_fin) April 7, 2025
In the past 24 hours , 446,407 traders were liquidated , the total liquidations came in at $1.38 billion!
The is the highest 24h total liquidation in USD value.
Everything is oversold. Relief bounce should come this week.
Tariffs fear is at Max. pic.twitter.com/noaQhu3FtN
In the past hour, $80.58 million was liquidated, with long trades accounting for $59.34 million. Over the past 4 hours, $415.85 million in liquidations were recorded. Of this, $375.81 million came from long positions. Significantly, Bitcoin held firm above $75,000 despite the volatility. Consequently, oversold conditions across assets may prompt a short-term bounce.
