U.S. Economic Concerns Impact Markets Amid Tariff Worries

According to BlockBeats, recent data has heightened concerns about the U.S. economic outlook, with signs indicating a significant decline in consumer confidence and spending due to fears of tariff-induced inflation. This has led to a rise in long-term inflation expectations. The U.S. stock market experienced a sharp weekly decline, erasing gains from the previous week's rally. The S&P 500 fell by 1.53%, the Dow Jones Industrial Average dropped 0.96%, and the Nasdaq Composite decreased by 2.59%. The Magnificent 7 tech index also saw a 2.95% decline. The cryptocurrency market mirrored the stock market's downward trend. Bitcoin surged to nearly $89,000 at the start of the week but fell back following news of U.S. President Donald Trump's tariff actions, further impacted by Friday's PCE data. As of the latest report, Bitcoin was priced at $81,884, marking a 4.46% decline over the past seven days. Other major tokens also saw declines, with Ethereum falling below $1,800, approaching new lows. Market sentiment remains subdued, with continued pressure expected until there is clarity on Trump's tariff measures. In the commodities and forex markets, the U.S. dollar index saw a slight weekly decline of 0.05%. Risk aversion suppressed risk assets, while geopolitical tensions supported some market bottoms. Oil prices rose by approximately 2% over the week, and gold continued its four-week rally, reaching a new all-time high with spot gold surpassing $3,100. Weak data from last week has reignited economic concerns, leading to a broad market downturn. With Trump's "reciprocal tariffs" expected to be announced on April 2, market nerves are on edge, and risk aversion is increasing. Additionally, the U.S. March non-farm payroll report is set to be released this Friday evening, followed by a speech from Federal Reserve Chair Jerome Powell. The Fed held rates steady in March, and the market is eager for Powell's insights on the U.S. economy, inflation, and the impact of Trump's tariff policies to glean new clues about the Fed's monetary policy direction and provide more reliable guidance for April's market trajectory.