market risk appetite

4E: CPI eases inflation concerns, market risk appetite warms up

ChainCatcher News: The U.S. February CPI year-on-year growth rate has dropped to a new low since last November, and the core CPI year-on-year growth rate has reached a four-year low. Inflation is below expectations across the board, easing concerns about "stagflation." Traders have increased bets on interest rate cuts, and market risk appetite is warming up.According to 4E monitoring, the three major U.S. stock indices showed mixed performance: the Dow Jones fell by 0.20%, the S&P 500 rose by 0.49%, and the tech-heavy Nasdaq surged over 1.2%, driven by a strong rebound in tech stocks, with Tesla soaring over 7% and Nvidia rising over 6%. However, the market remains concerned that the slowdown in inflation may be temporary, as the Dow has seen three consecutive declines and the limited gains in the S&P reflect cautious market sentiment.The cryptocurrency market is warming up, with Bitcoin spiking to $84,539 at the moment the CPI was announced, then retreating to around $80,000 for support, and continuing to rebound. As of the time of writing, it has risen to $84,000, with a 24-hour increase of 2%. Other major tokens have also seen slight increases, while Ethereum remains relatively sluggish, striving to stay above $1,900. BNB has risen by 4.95% due to a $2 billion investment boost from Abu Dhabi.In the forex and commodities sector, the dollar has seen a slight rebound supported by the slowdown in inflation, ending a previous seven-day decline. Oil demand has strengthened, pushing U.S. oil prices up by over 2.1%. Uncertainty over tariffs and the cooling of inflation have contributed to a rise in gold prices, with spot gold increasing by 0.62% at the close.Although the improvement in inflation opens a window for the Federal Reserve to cut rates, the uncertainty surrounding trade policy raises doubts about the inflation outlook. The market expects the Federal Reserve to maintain interest rates at the March 19 decision, with CME FedWatch indicating that traders anticipate possible rate cuts in June and September. Investors are focused on tonight's PPI and initial jobless claims data.

4E: Series data strongly supports the expectation of a "soft landing" for the U.S. economy, and market risk appetite is rising

ChainCatcher News: The U.S. Department of Commerce announced yesterday that September retail sales exceeded expectations with a month-on-month increase of 0.4%, highlighting the resilience of U.S. consumer spending, which continues to provide strong momentum for the U.S. economy. A series of robust economic data recently has reinforced market expectations for only a 25 basis point rate cut.According to 4E monitoring, after the data release, U.S. stocks opened higher but then fell, with the S&P reaching a new intraday high before turning down, and the Nasdaq also nearly erasing its early gains. However, the Dow Jones reached new intraday and closing highs, marking two consecutive days of gains. By the close, the S&P 500 was down 0.02%, the Nasdaq was up 0.04%, and the Dow was up 0.37%. The cryptocurrency market followed U.S. stocks with slight fluctuations; at the time of writing, Bitcoin was at 67,972, up 0.8%, and Ethereum was at 2,632, up 0.43%.In the forex and commodities sector, positive economic data pushed the U.S. dollar index to an 11-week high, rebounding 3.34% since October. The European Central Bank is expected to cut rates on Thursday, causing the euro to decline for four consecutive days to an 11-week low. Last week, U.S. EIA crude oil inventories unexpectedly decreased, indicating strong demand, which led to a rise of about 0.40% in international oil prices, halting a four-day decline and moving away from two-week lows. Spot gold benefited from uncertainties surrounding the U.S. elections and expectations of more monetary policy easing, approaching 2,700 dollars, setting a new historical high, with an increase of over 30% this year.Recent data shows that retail sales continue to grow, with better-than-expected non-farm payroll data, a stronger-than-expected unemployment rate, and a recent cooling trend in initial jobless claims. Coupled with the steady decline in U.S. inflation and the upward revision of long-term GDP growth rates beyond expectations, this provides strong support for the "soft landing" logic of the U.S. economy. Meanwhile, a new round of global rate cuts is accelerating, significantly improving financial market sentiment and generally increasing investors' risk appetite. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, commodities like gold, and forex. It recently launched a USDT stablecoin financial product with an annualized yield of 5.5%, providing investors with potential hedging options. 4E reminds you to pay attention to market volatility risks and to allocate assets wisely.
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