4E: The decline in US stocks continues, the cryptocurrency market rebounds, and the market rekindles expectations for three rate cuts by the Federal Reserve this year
ChainCatcher news, according to 4E monitoring, the U.S. tariff policy on its three major trading partners has been implemented, and investors' concerns about the escalation and expansion of the trade war have intensified. U.S. stocks opened lower across the board on Tuesday, with the three major indices at one point dropping nearly 2% in the early session. However, as the U.S. Secretary of Commerce hinted that Trump might lower tariffs on Canada and Mexico, coupled with investors betting again that the Federal Reserve will cut interest rates due to recession risks, the decline in U.S. stocks eased. Ultimately, the Dow Jones Industrial Average closed down 1.55%, the Nasdaq fell 0.35%, and the S&P 500 index dropped 1.22%. Large tech stocks initially fell collectively but turned to gains at midday, with some individual stocks closing higher.The cryptocurrency market followed the decline of U.S. stocks after their opening, with Bitcoin briefly dropping to a low of 81,500. However, as the decline in U.S. stocks narrowed, the market also began to rebound. At the time of writing, Bitcoin was reported at 87,500 USD, up 4.25% in 24 hours. Ethereum, after falling below 2,000 USD, returned above 2,100 USD, with a 24-hour increase of 5.8%. Over the past week, the cryptocurrency market has been significantly influenced by information, with high volatility, increased operational difficulty, light trading, and no significant changes in on-chain activity.In the forex and commodities sector, following Trump's implementation of tariffs on Canada and Mexico, the U.S. dollar index fell over 0.9% during the day, hitting a three-month low; crude oil has fallen for three consecutive days, with U.S. oil reaching a new low since December last year; rising safe-haven demand and a weaker dollar supported an increase of over 1.2% during the day.The escalation of trade tensions has heightened market concerns about the U.S. economic outlook. After the U.S. fulfilled its threat of tariffs on Canada and Mexico, investors increased their bets on the Federal Reserve cutting interest rates three times this year, each by 25 basis points, for the first time since mid-December last year. Additionally, the U.S. Secretary of Commerce hinted that Trump might announce a grace period for tariffs on Canadian and Mexican goods as early as the 5th, and the market is closely watching whether this event will bring about a turnaround.
