High-Beta Names Regain Momentum as Rate Expectations Soften
SPCX saw a sharp rebound, even as xStocks DeX volumes declined slightly. This week, we dive into the split between a growing tokenized equity TVL and weaker trading activity.
Three July FOMC dissents for a rate hike put Wednesday's minutes in focus. A softer July CPI cut September hike odds to 32.1% from 53.6%, while xStocks split in two: aggregate TVL rose 6.1% to $526.2M, but weekday on-chain volume nearly halved.
The July FOMC produced three dissents in favor of a rate hike, the first three-way dissent in the same direction in a decade. Wednesday's minutes will show whether those votes were isolated or the start of a broader shift. The market has already moved the other way. A softer July CPI pulled implied rates lower across the curve and cut the odds of a September hike to roughly one in three, from better than one in two. Even so, the December contract still implies a 3.85% policy rate, compared with 3.63% for the active contract. Tokenized equities also split in two. Aggregate TVL rose 6.1% to $526.2M, while weekday on-chain volume fell to $14.5M from $26.9M. SPCXx was relatively resilient. Wednesday's minutes and Friday's flash PMIs are the week's main tests for rates and risk appetite.