PCE data

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: 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.
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