4E: Tariffs and inflation hit hard, risk aversion sentiment heats up, this week focus on Trump's "reciprocal tariffs" and US Non-farm Payrolls (NFP)

According to ChainCatcher news, monitoring by 4E shows that last week's data has increasingly worried the market about the outlook for the U.S. economy. More and more signs indicate that due to concerns over tariffs pushing up inflation, American consumer confidence has significantly declined, spending has decreased, and long-term inflation expectations have risen. U.S. stocks suffered heavy losses last week, ruining the strong rebound at the beginning of the week. The S&P 500 index fell by a cumulative 1.53%, the Dow Jones by a cumulative 0.96%, and the Nasdaq by a cumulative 2.59%. The Magnificent 7 index of the seven tech giants fell by 2.95% last week. The cryptocurrency market follows the fluctuations of the US stock market, with Bitcoin starting high last week approaching $89,000, then falling back under the pressure of Trump's tariff news, and the PCE data released on Friday further hitting it hard. As of the time of writing, it is reported at $81,884, down 4.46% over the past 7 days. Other mainstream tokens generally declined, with Ethereum dropping below $1,800 nearing a new low. Market sentiment is sluggish and may remain under pressure until Trump's tariff actions become clearer. In the foreign exchange sector, the US dollar index fluctuated and fell by 0.05% last week; risk assets were suppressed by safe-haven demand, while geopolitical situations supported some bottoms. Oil prices rose by about 2% last week, and gold has risen for four consecutive weeks, reaching a new all-time high, with spot gold breaking through 3100 US dollars. Last week's weak data reignited economic concerns, leading to a comprehensive plunge in the financial markets. As the "reciprocal tariffs" from Trump loom on April 2nd, market nerves are frayed and risk aversion is rising. Additionally, the U.S. non-farm payroll report for March will be released this Friday evening, followed by a speech from Powell. The Federal Reserve remained inactive in March, and the market is looking forward to Powell's further insights on the U.S. economy, inflation, and the impact of Trump's tariff policies to seek new clues for the direction of the Fed's monetary policy and provide more reliable guidance for the market direction in April.