U.S. Stocks, Crypto Markets Tumble Amid Trump Tariffs, Central Bank Week

Last week, the three major U.S. stock indexes experienced significant volatility, closing lower due to the continuous impact of Trump's tariff policy. The Dow Jones Industrial Average fell by about 3.1%, marking its worst weekly performance since March 2023. The S&P 500 dropped by 2.27%, and the Nasdaq Composite fell by 2.43%, both registering their fourth consecutive weekly decline. Large-cap tech stocks, with the exception of NVIDIA, which saw a nearly 8% rebound, closed lower for the week.

The crypto market also saw significant fluctuations. Bitcoin fell to a recent low on Tuesday before rebounding and oscillating around $83,000. U.S. stocks closed higher on Friday, pushing Bitcoin above $85,000, but over the weekend, due to insufficient liquidity, it was unable to sustain its upward trend. At the time of writing, it was trading at $83,144, up nearly 1.5% in the past 7 days. Most other major altcoins saw slight gains, with Ethereum striving to hold above $1,900, and BNB receiving a boost from a $2 billion investment from Abu Dhabi and renewed on-chain meme activity, rising by nearly 10% in the past 7 days.

In the forex and commodities markets, the U.S. dollar index fell by about 0.1% last week. The oil market rebounded on Friday, reversing the week-long downward trend, with U.S. oil posting its first weekly gain in nearly two months. The shadow of the trade war triggered a safe-haven frenzy, pushing spot gold to a high of $3,004.94 on Friday, surpassing the $3,000 integer psychological barrier for the first time in history, with a total weekly gain of 2.65%.

In the U.S., February inflation data, including CPI and PPI, were both lower than expected, easing concerns about economic stagnation. However, the latest University of Michigan Consumer Sentiment Index hit its lowest level in nearly 3 years, indicating consumers' extremely pessimistic outlook on the economy. This week marks a "Super Central Bank Week," with over 20 central banks set to announce their latest policy rates, with a focus on the Federal Reserve and the Bank of Japan. Currently, the market expects the Fed and the Bank of Japan to maintain their rates.

This week's central bank decisions are crucial as they will provide insights into the global economic outlook and potential policy shifts. Investors are closely watching the Fed's stance on interest rates, given the recent economic data and market volatility. The Bank of Japan's decision will also be closely scrutinized, as any change in policy could have significant implications for global markets. The combined impact of these decisions could lead to further volatility in the U.S. stock and crypto markets, as investors adjust their positions based on the new information.

In summary, the U.S. stock and crypto markets have experienced intensified volatility due to Trump's tariff policy and the upcoming "Super Central Bank Week." The significant fluctuations in Bitcoin and other major altcoins, along with the mixed economic data, have created an uncertain environment for investors. The decisions from the Federal Reserve and the Bank of Japan this week will be critical in shaping the market's direction in the coming weeks. Investors are advised to remain cautious and allocate their assets reasonably to mitigate the risks associated with market volatility.