4E: Tariff and Inflation Squeeze, Rising Risk Aversion, Focus This Week on Trump's "Reciprocal Tariffs" and Non-Farm Data

March 31 - Based on 4E monitoring, the data released last week has been increasingly worrying the market regarding the outlook of the U.S. economy. A growing number of signs indicate that due to concerns about tariff-driven inflation, U.S. consumer confidence has plummeted sharply, spending has decreased, and long-term inflation expectations have risen. The U.S. stock market witnessed a sharp weekly decline, erasing last week's strong rebound. The S&P 500 index fell by 1.53%, the Dow fell by 0.96%, and the Nasdaq fell by 2.59%. The Tech Seven (Magnificent 7) index dropped by 2.95% last week. The crypto market followed the downward volatility of the U.S. stock market. Bitcoin started last week by surging nearly to $89,000 and then retreated as the Trump tariff news weighed on it. It further plummeted on Friday with the release of the PCE data. At the time of writing, it was reported at $81,884, showing a 4.46% decline in the past 7 days. Other major altcoins generally fell, with Ethereum dropping below $1,800 and approaching a new low. The market sentiment is gloomy, and it may continue to be under pressure until the clarity of Trump's tariff actions becomes evident. Regarding major forex, the U.S. dollar index fluctuated last week and fell by 0.05% overall. The flight to safety suppressed risk assets. With some support from geopolitical tensions at the bottom, oil prices rose by about 2% last week. Gold rose for the fourth consecutive week and hit a new historical high, with spot gold breaking through $3,100. Last week's weak data reignited economic concerns, leading to a comprehensive market slump. As the "equal tariff" from Trump on April 2 approaches, the market is in a tense state, and risk aversion is on the rise. In addition, the U.S. March non-farm payroll report will be released late this Friday, followed by a speech from Powell. The Fed maintained its stance in March. The market is looking forward to Powell's further views on the U.S. economy, inflation, and the impact of Trump's tariff policy in order to find new clues on the Fed's monetary policy direction and provide more reliable guidance for the April market direction. eeee.com, as a financial trading platform supporting cryptocurrency, stock indices, bulk gold, forex, and other assets, 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 make proper asset allocations.