U.S. stocks edged higher on August 21, with the major indices attempting to rebound after the prior session's sell-off. At the time of writing, the S&P 500 and Dow were each up roughly 0.3%, while the Nasdaq gained about 0.6%. Crypto-linked stocks stole the spotlight as Bitcoin surged past the $77,000 mark, hitting its highest level since May 27 and notching a cumulative gain of over 20% over the past five sessions.

Across the tape, the crypto sector rallied in force. MSTR, COIN, and HOOD each posted gains exceeding 7%. Most tech names recovered ground, with attention turning to Nvidia's earnings due next week. On the China ADR front, Alibaba fell over 4% in pre-market trading, weighing on sector sentiment. Walmart edged lower amid slowing sales and a tepid profit outlook.

Bitcoin Tops $77,000 — Crypto Stocks Erupt

As of publication, MicroStrategy (MSTR) was up over 7% at $120.45; Coinbase (COIN) surged nearly 9% to $188.10; and Robinhood (HOOD) jumped over 11% to $106.40. BMNR and CRCL each posted gains exceeding 10%.

On the macro and policy front, Treasury Secretary Bessent's move to expand liquidity support for Treasuries bolstered market confidence, while former President Trump's meeting with crypto industry leaders and his push for legislative progress further ignited sentiment. That said, analysts cautioned that the current rally largely reflects expectations around fiscal policy direction rather than concrete legislative breakthroughs.

Alibaba Slides Over 4% Pre-Market; China ADRs Mixed

Alibaba (BABA) dropped 4.24% in pre-market trading. Meanwhile, KE Holdings (BEKE) reported that non-GAAP net profit surged 74.9% year-on-year to RMB 3.185 billion, with net margin hitting a three-year high of 13%. However, total revenue slipped 5.7% year-on-year, and home renovation revenue tumbled 30.1%, leaving the market cautious about its growth trajectory.

Nvidia Earnings Countdown — Market Awaits the AI Bellwether

Nvidia (NVDA) inched higher in early trading as the market zeroed in on its upcoming earnings report, slated for August 26. Analysts are forecasting that a $2.3 trillion hyperscale revenue backlog and robust AI demand will drive results above expectations. However, Bespoke Investment noted that Nvidia has seen its stock decline following each of its last three earnings beats — whether the chip giant can break that pattern this time around remains a key question.

Elsewhere, Goldman Sachs flagged that gold's rally faces rising two-way volatility risk, with recovering Western investor demand and continued central bank buying potentially pushing prices higher, while hedging flows could also accelerate swings. Separately, Trump announced that up to 300,000 metric tons of imported ground beef would be exempt from above-quota tariffs over the next 90 days, with the product to be sold at roughly 25% below market prices.