PCE

4E: Tariff threats weigh on US stocks and Bitcoin, market focuses on tonight's US February PCE data

ChainCatcher news, according to 4E monitoring, Trump announced a 25% tariff on all non-American made cars and warned that if Canada and the EU retaliate together, they will face harsher tariff reprisals. This tough stance has heightened market panic, overshadowing better-than-expected GDP data and escalating trade war concerns. U.S. stocks fell for the second consecutive day, with the S&P 500 down 0.33%, the Dow down 0.37%, and the Nasdaq down 0.53%.The cryptocurrency market generally declined, with Bitcoin dropping below $86,000 due to the weak opening of U.S. stocks, but later narrowed its losses as U.S. stocks rebounded, closing at $87,216, down 0.4% in 24 hours. Other major tokens also saw slight declines, with Ethereum fluctuating around $2,000. Overall market sentiment is low, and until Trump's tariff actions become clearer, the short-term upward potential of the market may still be limited.In the forex commodities sector, the U.S. dollar index fluctuated down 0.25%; a significant decline in U.S. inventories supported rising oil prices, but tariff policies dampened demand expectations, leading to a weakening of the oil price rally; heightened risk aversion pushed spot gold up 1.23%, breaking through $3,060, reaching a historic high.The market is focused on the PCE inflation data for February, which will be released tonight at 20:30. The market expects the year-on-year PCE inflation to be around 2.5%, with core PCE possibly rising to 2.7%. If the data remains strong, it may delay the market's expectations for interest rate cuts. Additionally, as April 2 approaches, the final determination of Trump's "reciprocal tariffs" policy is also under close scrutiny.

4E: The US stock and cryptocurrency markets are recovering, with a focus this week on the US February PCE price index

ChainCatcher news reports that, according to 4E monitoring, last week the Federal Reserve's dovish remarks and Trump's statements about flexibility in the reciprocal tariff plan alternately boosted confidence in the U.S. stock market. After significant fluctuations, the three major indices collectively closed higher for the week: the Dow Jones increased by 1.2%, marking the largest weekly gain in over two months; the S&P 500 rose by 0.51%, ending a four-week losing streak; the Nasdaq slightly increased by 0.17%, halting a previous four-week decline. However, large tech stocks generally closed lower for the week, with Nvidia down 3.26%, Tesla down 0.53%, marking its ninth consecutive week of decline.The cryptocurrency market experienced fluctuations but overall showed a mild upward trend. Bitcoin rebounded after dipping near $81,000 on Tuesday, and on Thursday, driven by the Federal Reserve's dovish remarks, it surged above $87,000, reaching a new high in half a month, before oscillating mainly in the $84,000 range. This morning saw another wave of rapid increases, reporting $85,721 before the deadline, up 3.18% over the past seven days. Other major tokens mostly showed slight increases, with Ethereum striving to stabilize above $2,000, and the meme craze on the BNB chain continuing to attract attention. Signs of market recovery are gradually emerging, and investor sentiment has improved.In the forex and commodities sector, the dollar index rose by 0.34% for the week, marking its first weekly increase this month. The ongoing Russia-Ukraine conflict and the situation in the Middle East continue to escalate, with crude oil rising over 2% for two consecutive weeks. Spot gold increased by 1.31% last week, marking three consecutive weeks of gains.Last week, the Federal Reserve maintained interest rates, in line with market expectations, with guidance for two rate cuts remaining for the year, and Powell's remarks provided some comfort to the market. This week, attention will focus on the PCE price index, the Federal Reserve's preferred inflation indicator, to be released on Friday. Additionally, as the "tariff deadline" on April 2 approaches, uncertainty keeps the market cautious. However, once the tariff outlook becomes clearer, the prolonged market turbulence may subside.
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