4E: Tariff Threat Drags Down US Stocks and Bitcoin, Market Focused on Tonight's US February PCE Data

On March 28th, according to 4E's monitoring, Trump announced a 25% tariff on all non-American-made cars and cautioned that if Canada and the EU were to retaliate jointly, they would face even more severe tariff retaliation. This tough stance has intensified market panic and overshadowed the better-than-expected GDP data. U.S. stocks fell for a second consecutive day, with the S&P 500 down by 0.33%, the Dow down by 0.37%, and the Nasdaq down by 0.53%. The crypto market generally declined. Bitcoin fell below $86,000 due to the lower opening of U.S. stocks. However, it later narrowed its losses following a rebound in U.S. stocks. At the time of writing, it was trading at $87,216, down by 0.4% in 24 hours. Other major coins also saw slight declines, with Ethereum fluctuating around $2,000. The overall market sentiment is low, and the short-term upside potential of the market may still be limited until the outcome of Trump's tariff actions becomes clear. In terms of commodities, the U.S. dollar index rebounded by 0.25%. A significant drop in U.S. inventories supported oil prices. However, tariff policies dampened demand expectations and weakened the oil price surge. The increased safe-haven sentiment drove spot gold up by 1.23% and broke through $3,060, hitting a historical high. The market is focused on the February PCE inflation data to be released tonight at 20:30. The market expects PCE inflation to be around 2.5% year-on-year, and core PCE may rise to 2.7%. If the data continues to be strong, it may delay the market's expectations of a rate cut. In addition, as April 2nd approaches, Trump's final determination on the "reciprocal tariffs" policy is also under scrutiny. 4E, as a financial trading platform supporting assets such as cryptocurrencies, stock indices, commodities like gold, and forex, recently launched a USDT stablecoin financial product with an annualized return rate of 8%, providing investors with a potential hedging option. 4E reminds you to pay attention to market volatility risks and to allocate your assets reasonably.