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4E: US Stock and Crypto Markets Rebound, Focus This Week on US February PCE Price Index

2025.03.24 11:00:34

March 24th. Based on 4E monitoring, during the past week, the dovish remarks from the Federal Reserve and President Trump's statement regarding flexibility in the tariff plan successively boosted stock market confidence. After significant fluctuations, the three major indices closed up collectively for the week: the Dow increased by 1.2%, marking the largest weekly gain in more than two months; the S&P 500 rose by 0.51%, ending a four-week losing streak; the Nasdaq rose slightly by 0.17%, halting the previous four-week decline. However, large-cap tech stocks generally closed the week in a lower position, with Nvidia down by 3.26%, Tesla down by 0.53%, and experiencing a consecutive nine-week decline. The cryptocurrency market witnessed fluctuations but overall showed a mild upward trend. Bitcoin dipped below $81,000 on Tuesday and then rebounded. It surged above $87,000 on Thursday following the dovish comments from the Fed and hit a two-week high. After that, it oscillated around the $84,000 level. This morning, it experienced another rapid increase and was trading at $85,721 before the deadline, with a 3.18% increase in the past 7 days. Other major altcoins saw slight gains, with Ethereum striving to hold above $2,000, and the on-chain meme trend of BNB continued to attract attention. Signs of a market recovery are emerging, and investor sentiment is improving. In the commodities market, the US dollar index rose by 0.34% for the week, marking its first weekly gain this month. Tensions between Russia and Ukraine and in the Middle East continued to escalate, resulting in a more than 2% increase in crude oil prices for two consecutive weeks. Spot gold rose by 1.31% last week, extending a three-week upward trend. Last week, the Federal Reserve maintained interest rates unchanged, in line with market expectations, with the guidance for two rate cuts still in place for the year. Powell's remarks also brought some comfort to the market. This week, the focus is on the release of the Fed's preferred inflation measure - the PCE Price Index on Friday. Additionally, as the April 2nd "tariff deadline" approaches, market caution remains due to uncertainty. However, once the tariff outlook becomes clearer, the ongoing market turbulence of recent weeks may start to subside. As a financial trading platform that supports cryptocurrency, stock indices, commodities such as gold, and forex assets, eeee.com recently launched a USDT stablecoin financial product with an 8% annualized return, providing investors with a potential hedging option. 4E reminds you to be aware of market volatility risks and to allocate your assets rationally.
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U.S. inflation pressure heats up again, with September's composite PMI rising to 58.4, marking a new high in over five years.

S&P Global data shows that the preliminary U.S. September Composite PMI Output Index rose to 58.4, significantly higher than August’s 56.0, marking the highest level since July 2021, indicating notable expansion in both manufacturing and services sector activity. The New Orders Index climbed from 55.2 to 58.2, its highest since March 2022. Strong demand pushed backlogs of uncompleted orders to their highest level since May 2022. S&P Global noted that the order backlog signals further expansion in future output and production capacity on one hand, while on the other hand, it indicates enhanced corporate pricing power, which could intensify inflationary pressures. Price indicators also rose notably: the Corporate Input Purchasing Prices Index climbed from 59.9 to 66.4, hitting its highest since October 2022. S&P Global pointed out that supply chain delays and insufficient operational capacity are driving up corporate costs, with supplier delivery times extending to their widest level since July 2022. Following the data release, spot gold fell below $4,300, the U.S. Dollar Index broke above 101, U.S. Treasury yields rose further, and the 10-year U.S. Treasury yield returned to above 5%. The Federal Reserve raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4.00% last week, signaling potential further rate hikes in the coming months.

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WTI and Brent crude oil see short-term gains, with Iranian media reporting that Iran's Foreign Minister Araghchi's contact with the US was unauthorized.

WTI and Brent crude oil futures rallied sharply in the short term. WTI crude hit $92 per barrel, up 2.82% on the day, while Brent crude broke above $98 per barrel, rising 2.76% intraday. In terms of news drivers, according to Iran’s Tasnim News Agency, Iranian Foreign Minister Al-Araghchi’s interaction with Steve Witkov, one of former US President Trump’s negotiators, was not coordinated or approved by relevant decision-making and responsible bodies including the Supreme National Security Council. Claims that the interaction was coordinated are untrue. Rezaei, secretary of Iran’s Supreme National Security Council, stated in a prior TV interview that the original plan was to once again convey Iran’s proposed seven conditions to the "intermediary". This is seen as indirectly indicating that Al-Araghchi did not receive authorization to exceed that scope and directly engage with Witkov. Accordingly, Al-Araghchi is required to explain to relevant bodies and the Iranian people over this alleged "improper" action, clarifying why he took the move in a way contrary to national interests.

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HTX Research Analyst WZ: Crypto market pricing is expanding outward, with regulation and macro liquidity emerging as key variables.

During the 7th live session of HTX’s Expert Lecture Hall, WZ, an asset analyst at HTX Research, noted that while crypto trends were once explained solely by crypto-specific factors, an increasing number of variables shaping the next crypto market cycle are now emerging outside the sector—marking the start of a new pricing cycle for crypto assets. On the regulatory front, WZ pointed out that while the comprehensive Clarity Act has faced Senate voting hurdles due to factors including the need to secure bipartisan votes, ties to the Trump family’s interests, and disputes over stablecoin revenue distribution, U.S. crypto regulation has not stalled. For instance, the SEC recently released an “innovation exemption” framework, allowing eligible compliant institutions to tokenize specific stocks, accelerating the integration of traditional finance and crypto. On the macro front, WZ noted that Middle East tensions and risks of a Strait of Hormuz blockade have lifted crude oil’s “risk premium”. Rising oil prices will stoke inflation expectations, which in turn impact U.S. Treasury yields and global liquidity. When energy prices remain elevated and interest rates stay high, upside potential for risk assets like Bitcoin may be constrained. WZ also added that in this cycle, the direct inflows and outflows of ETF funds have altered the traditional capital spillover logic, making a broad-based altcoin rally unlikely. However, in the new cycle, assets with new narratives and strong consensus will still see independent upward trends.

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Bonk Guy again calls for buying USELESS: Number of token holders hits a new all-time high, with short, medium and long-term trends continuing to rise.

Bonk Guy announced in a post that the number of addresses holding USELESS has hit a new all-time high. He pointed out that USELESS has maintained a recurring cyclical pattern over the past several months: outperforming the market, followed by a sharp pullback, consolidation, and then a fresh new high. Bonk Guy added that USELESS’s market capitalization has surged from a low of roughly $28 million a few months ago to approximately $318 million, with short-, medium-, and long-term cycles all exhibiting a trend of progressively rising highs and lows. He noted that this trajectory is distinct from the typical performance of meme coins, which usually peak after a rally.

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Veteran meme coins saw broad declines, with MUBARAK falling more than 40% from its intraday high and WIF dropping over 11%.

According to HTX market data, the crypto market has seen a short-term pullback, with established meme coins falling broadly. Key declines: MUBARAK dropped over 19% in 24 hours, plunging more than 40% from its intraday high, with its market cap slipping to $52.37 million. BROCCOLI714 fell over 13% in 24 hours, bringing its market cap to $22 million. WIF declined more than 11% in 24 hours, hitting a $230 million market cap. TRUMP dropped over 7% in 24 hours, with its market cap now at $1.477 billion. PEPE also fell over 7% in 24 hours, reaching a $1.874 billion market cap. TST saw a 24-hour decline of over 6%, standing at a $16 million market cap.

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US Secretary of State: Russia and Ukraine both interested in a limited ceasefire, US willing to facilitate energy negotiations

US Secretary of State Marco Rubio stated that both Russia and Ukraine have expressed interest in a limited ceasefire covering the food and energy sectors. He noted that the two sides have targeted energy facilities as strategic priorities in their war objectives, adding that negotiations on an energy ceasefire will be very difficult, but the US is willing to play a constructive role in advancing the relevant process. Rubio also said he discussed the Russia-Ukraine conflict and bilateral US-Russia relations with Russian Foreign Minister Sergey Lavrov, and hopes Russian President Vladimir Putin will accept the invitation to attend the G20 summit, believing this will create an opportunity for dialogue between the leaders of Russia and the US. (Jinshi)

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