Trump's Tariff Announcement Sparks Market Concerns

According to BlockBeats, U.S. President Donald Trump has announced a 25% tariff on all non-U.S. manufactured vehicles. He warned that if Canada and the European Union retaliate, they will face even harsher tariffs. This strong stance has heightened market fears of an escalating trade war, overshadowing better-than-expected GDP data. Consequently, U.S. stocks fell for the second consecutive day, with the S&P 500 closing down 0.33%, the Dow Jones Industrial Average dropping 0.37%, and the Nasdaq declining 0.53%. The cryptocurrency market also experienced a downturn, with Bitcoin initially falling below $86,000 due to the weak opening of U.S. stocks. However, it later narrowed its losses, trading at $87,216 at the time of reporting, marking a 0.4% decline over 24 hours. Other major tokens saw slight decreases, with Ethereum fluctuating around $2,000. Overall market sentiment remains subdued, and the short-term upward potential may be limited until Trump's tariff actions become clearer. In the foreign exchange and commodities sectors, the U.S. dollar index saw a 0.25% fluctuation. A significant drop in U.S. inventories supported oil prices, but the tariff policy dampened demand expectations, weakening the upward trend in oil prices. Meanwhile, heightened risk aversion drove spot gold up by 1.23%, breaking through $3,060 to reach a historic high. Market attention is now focused on the release of February's PCE inflation data at 20:30 UTC+8. The market anticipates a year-on-year PCE inflation rate of 2.5%, with core PCE potentially rising to 2.7%. If the data remains strong, it could delay expectations for interest rate cuts. Additionally, as April 2 approaches, the final decision on Trump's 'reciprocal tariffs' policy is also under close scrutiny.