4E: U.S. August PCE data boosts rate cut expectations, U.S. stocks and cryptocurrency markets continue to rise

ChainCatcher news, data released on Friday showed that the U.S. core PCE in August was below market expectations, with a year-on-year increase of 2.2%, close to the Federal Reserve's 2% target. The cooling inflation has strengthened market expectations for the Federal Reserve to continue cutting interest rates in the coming months, with the probability of a 50 basis point cut in November rising from 49.3% to 54.1%.

According to 4E observations, the Dow Jones Industrial Average rose 0.59% last week, the S&P 500 index increased by 0.62%, and the Nasdaq rose by 0.95%, marking the third consecutive week of gains for all three major indices. Bitcoin rose nearly 4% last week, marking three weeks of consecutive gains, heading towards the best September on record. Under the expectation of continued interest rate cuts, the U.S. dollar index fell for four consecutive weeks, erasing all gains since mid-July. Spot gold hit a historical high last week, rising 1.38% due to interest rate cuts by major central banks such as the U.S. and China, coupled with ongoing tensions in the Middle East, with a nearly 30% increase this year, surpassing the S&P 500 index's 20% gain.

With inflation falling in Europe and the U.S., and the pace of global central bank rate cuts accelerating, this will provide strong momentum for the stock and cryptocurrency markets. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, bulk gold, and foreign exchange. U.S. non-farm payroll data for September will be released this Friday; if it shows strong performance, it will further boost expectations for a 50 basis point cut in November. 4E reminds you to pay attention to market volatility risks and to allocate assets wisely.