Stocks took a hit on Thursday, and the dollar gained strength as traders anxiously waited for the Federal Reserve to confirm that interest rate cuts are coming.

It was a tough day across the board for U.S. stocks, with technology shares dragging down the major indexes. The Dow Jones Industrial Average fell 0.43%, landing at 40,712. The S&P 500 didn’t fare much better, dropping 0.89% to 5,570, while the Nasdaq Composite tumbled 1.67% to close at 17,619.

On the other hand, the dollar managed to bounce back from a recent slump. Ahead of Federal Reserve Chair Jerome Powell’s upcoming speech on Friday, the greenback strengthened by about 0.4%.

The number of new unemployment claims in the U.S. increased last week, adding fuel to the fire of a slowly cooling labor market. Business activity is also showing signs of slowing down, and inflation seems to be losing steam.

These indicators are giving the Fed more room to change its focus toward job creation, which could explain the recent drop in interest rates on home loans.

Lower rates have already sparked a larger-than-expected recovery in existing home sales last month, hinting at the impact Fed decisions are having on different sectors.

But the real story here is how the dollar is positioning itself in the global economy. As central banks worldwide watch the Fed’s moves, some are already hinting at their next steps.

For instance, the Bank of Korea might cut rates as early as October, and Bank Indonesia has rate cuts lined up for the fourth quarter. Still, everyone’s eyes are on the Fed, as the American easing cycle seems to have more room to run than in other countries.

Unfortunately, crypto seems to be stuck in the mud while the traditional financial world plays out its drama. The total market cap for cryptocurrencies saw a slight uptick, rising to approximately $2.14 trillion—a 1.76% increase over the last 24 hours.

But Bitcoin still can’t break past $60,000. Instead, it’s staying at $58,870, with a 2.28% decrease. Ethereum didn’t see much movement either, trading at around $2,619.90—a modest 1.02% increase over the last 24 hours. The Fear and Greed Index, which gauges market sentiment, stood at a neutral 50.