Risk assets shook off a sluggish start to May on Tuesday, rallying after a batch of US economic data topped estimates. Bitcoin climbed toward $81,600, while the S&P 500 and Nasdaq 100 both jumped. The moves suggest traders are betting the economy can keep growing without forcing the Fed back into tightening mode.
Data points that moved markets
Three releases all beat expectations. The JOLTS report showed March job openings at 6.866 million, slightly above the 6.84 million consensus. Hires rose by 655,000 to 5.6 million. New home sales surged 7.4% in March to a 682,000 annualized rate — well above the 650,000 forecast. Inventory tightened to 8.5 months of supply, and median prices eased to $387,400.
The April ISM Services PMI registered 53.6, just under the 53.7 estimate but still in expansion territory. That's a tick down from March's 54.0, but not enough to spook anyone.
Bitcoin catches the bid
Bitcoin advanced roughly $1,000 from its intraday low, settling near $81,266. The S&P 500 spiked from around 7,200 to 7,253, and the Nasdaq 100 hit 27,964. The rally was broad, not just tech — the data seemed to ease two fears at once: that the economy is overheating and that it's stalling.
Why the Fed can stay patient
Markets interpreted the data as supportive of moderate growth and a patient Federal Reserve. Strong jobs and housing demand, combined with a still-expanding services sector, reduce the pressure on the central bank to cut rates soon. At the same time, nothing in the numbers screams inflation breakout, so the "higher for longer" narrative stays intact without tipping into panic. For crypto, that's a decent backdrop — steady liquidity, no recession scare, and no sudden hawkish pivot.
The next test comes later this month with the April CPI report. If inflation stays sticky, the relief rally could fade. For now, traders are taking the good news at face value.
