Bitcoin ETF Flows in Europe Surge After US Halving Rally: Is It Sustainable?

Investors hit the brakes on Wednesday, sending major US indexes lower after a string of high-profile tech earnings fell short of expectations. Bond yields crept upward as traders digested fresh economic data, while energy and gold prices held steady. ## Stocks Retreat After Mixed Tech Results The **S&P 500** slipped, closing at **5,065.41**, down **0.8%** as tech giants failed to deliver the blockbuster results many had hoped for. The **Nasdaq Composite** dropped **1.3%** to **15,600.20**, weighed down by lackluster guidance from several leading software and semiconductor names. Meanwhile, the **Dow Jones Industrial Average** held up better, shedding just **0.5%** to finish at **37,850.12**. Disappointment centered on quarterly results from major technology firms. While some, like Microsoft, managed to top revenue estimates, cautious outlooks from Alphabet and chipmaker AMD rattled sentiment. Investors appeared especially sensitive to any sign of slowing growth, given the sector’s outsized influence on recent market gains. ## Bond Yields Edge Up as Data Reinforces Cautious Fed In fixed income, Treasury yields ticked higher. The benchmark **10-year yield** rose to **4.65%**, up from 4.61% on Tuesday. The move followed a fresh batch of economic data showing US GDP growth cooling to **1.6%** annualized in Q1—below forecasts—but with inflation indicators running hotter than expected. This combination reinforced expectations that the Federal Reserve will remain cautious on rate cuts in the coming months. As highlighted in our Smart Bond ETF Investing for Europeans guide, these shifts underscore the importance of duration and credit quality decisions for ETF investors navigating today’s volatile rate environment. ## Commodities Hold Steady; Dollar Remains Firm Commodities traded in a tight range. **WTI crude oil** hovered near **$82 per barrel**, little changed as traders balanced ongoing Middle East tensions with concerns about softer global demand. **Gold** settled at **$2,320 an ounce**, holding steady as investors weighed inflation risks against a firmer US dollar. The **US Dollar Index (DXY)** edged up to **105.8**, reflecting the greenback’s appeal as global investors reassessed risk. The **EUR/USD** pair slipped slightly to **1.065**, as softer eurozone inflation readings added to currency pressure. ## Key Movers: Tech Falters, Energy and Healthcare Shine Tech stocks led the decline. **Alphabet (GOOGL)** tumbled **5.2%** after executives flagged slower ad growth and rising AI-related expenses. **AMD (AMD)** slid **7.1%** as its data center chip sales disappointed, despite optimism around AI demand. **Meta Platforms (META)** also dropped **3.6%**, extending its post-earnings slide on concerns about future spending. By contrast, energy names outperformed. **ExxonMobil (XOM)** and **Chevron (CVX)** both rose over **1%**, buoyed by stable oil prices and solid earnings. Healthcare proved resilient as well, with **UnitedHealth Group (UNH)** gaining **1.5%** after reaffirming its 2026 outlook. ETF investors tracking sector moves have seen pronounced divergence in recent sessions—a trend explored in our 2026 European ETF Investing Playbook. ## What to Watch: Fed Decision, Apple Earnings, and More Looking ahead, all eyes turn to the Federal Reserve’s policy announcement on Wednesday evening. While no rate change is expected, markets will parse Chair Powell’s comments for clues on the timing of potential cuts. Apple reports earnings after the bell, with investors eager for updates on iPhone demand and AI initiatives. Other key catalysts include Friday’s US jobs report and ongoing geopolitical developments in the Middle East and Ukraine. European investors will be watching for ETF flows and sector rotations, given the sharp moves in US tech and resilient performance from energy and healthcare—an area we explore further in our coverage of VWCE’s record asset growth. Stay tuned as we track these developments and what they mean for your portfolio.