4E: Tariffs and inflation are pitting each other, risk aversion is heating up, this week focuses on Trump's "reciprocal tariffs" and non-farm data

On March 31st, according to 4E monitoring, the data released last week made the market more worried about the outlook for the US economy. There are more and more signs that the confidence of US consumers has fallen sharply, spending has been reduced, and long-term inflation expectations have risen due to concerns about tariff-driven inflation. US stocks fell sharply on a weekly basis, ruining the start of last week's big rebound. The S & P 500 index fell 1.53%, the Dow fell 0.96%, and the Nasdaq fell 2.59%. The Magnificent 7 index of technology stocks fell 2.95% last week.
The crypto market followed the US stock market down. Bitcoin started high near $89,000 last week, and then fell back under the pressure of Trump's tariff news. PCE data hit on Friday and suffered a further setback. It was reported at $81,884 before the deadline, down 4.46% in the past 7 days. Other mainstream tokens generally fell, and Ethereum fell below $1,800 near a new low. Market sentiment is sluggish, and it will continue to be under pressure before Trump's tariff action is clear. Last week's weak data reignited economic concerns, and financial marekt fell sharply across the board. With Trump's "reciprocal tariffs" coming on April 2, market nerves are tight and risk aversion is heating up. In addition, the US March non-farm report will be released this Friday night, and Powell will also speak later. The Federal Reserve stayed put in March as the market looked to Powell for further views on the U.S. economy, inflation, and the impact of Trump's tariff policies, in order to find new clues about the direction of the Fed's monetary policy and provide more reliable guidance for the direction of the market in April.