The US stocks they regress this Monday, while Bitcoin (BTC-USD) spiked again as investors count down to crucial inflation data that will test bets on interest rate cuts by the Federal Reserve.
The Dow Jones industrial average falls approximately 0.3%, while the S&P 500 loses 0.3%. The Nasdaq Composite fell about a 0.3% after a sharp decline in technology on Friday.
US equities weakened after the February jobs report, which showed that hiring remains strong even as unemployment exceeded estimates, a mixed picture that added little certainty to the rate cut debate. Now, the market is preparing for one last major test before the Federal Reserve policy meeting on March 20.
The report of Consumer’s price index Tuesday is in the spotlight after the president Jerome Powell He said the Fed wants to be more confident that inflation is cooling before easing borrowing costs. Given this, a surprise rise would undermine optimism about a change in Fed policy that has boosted stocks.
Crypto-linked stocks rise
Meanwhile, all eyes are on Bitcoin’s furious rally, which hit a new record on Monday after surpassing $72,000 for the first time. Thus, shares linked to cryptocurrencies rise with the tide of the rally. The actions of Coinbase (COIN) and Marathon Digital Holdings (MARA) gain about 5%, while MicroStrategy (MSTR) adds more than 10%.
Meta shares fell as much as 5% on Monday after Republican presidential candidate Donald Trump criticized the social media giant in an interview. Meta shares have performed excellently this year, rising approximately 40%. Last Thursday, stocks hit all-time highs, before a market decline on Friday.
Consumer expectations about long-term inflation rose, according to a February survey released Monday by the Federal Reserve Bank of New York. The study showed that median inflation expectations remained unchanged at 3% one year ahead.
However, expectations for the next three years increased from 2.4% to 2.7%, and for a five-year horizon they increased to 2.9% from 2.5%, according to the Consumer Expectations Survey of February.
Source: Ambito
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