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The US August PCE data boosts rate cut expectations, with the US stock and cryptocurrency markets continuing to rise

The US August PCE data boosts rate cut expectations, with the US stock and cryptocurrency markets continuing to rise

Bitget2024/09/30 03:24

Data shows that the U.S. core PCE for August came in lower than market expectations, increasing 2.2% year-on-year, nearing the Federal Reserve's 2% target. The cooling inflation has strengthened market expectations that the Fed will continue to cut interest rates in the coming months. The probability of a 50 basis point rate cut in November has risen from 49.3% to 54.1%.

According to observation, last week the Dow Jones rose 0.59%, the S&P 500 increased by 0.62%, and the Nasdaq gained 0.95%, with all three major indices recording gains for the third consecutive week.

Bitcoin surged nearly 4% last week, marking its third consecutive weekly rise, heading towards its best September on record. With expectations of continued rate cuts, the U.S. dollar index has fallen for four consecutive weeks, erasing all gains since mid-July. Spot gold hit a new all-time high last week, rising 1.38%, driven by rate cuts from major central banks like the U.S. and China, as well as ongoing tensions in the Middle East. Gold has gained nearly 30% this year, outperforming the S&P 500’s 20% increase.

With inflation declining in both Europe and the U.S., the pace of global central bank rate cuts is accelerating, providing strong momentum for both stock and crypto markets. This Friday, the U.S. will release its September non-farm payroll data, and if the figures are strong, it will further bolster expectations for a 50 basis point rate cut in November.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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