【4E: Last week, risk assets collectively suffered setbacks, and this week we enter the Christmas holiday with overall poor liquidity】 On December 23, news reports that the Federal Reserve's rate cuts influenced last week's market. Although the rate cut of 25 basis points on Wednesday was expected, the published dot plot and post-meeting comments were far more hawkish than anticipated, reducing the prospects for future rate cuts by half. The risk market faced its largest correction since December, and the market fell into panic. According to 4E monitoring, after the PCE data was released on Friday, U.S. stocks rebounded, with all three major indexes closing up more than 1%. The S&P 500 index fell a cumulative 1.99% for the week, the Dow Jones fell 2.25%, and the Nasdaq fell 1.78%. The cryptocurrency market experienced its first weekly decline since Trump was elected, with the entire market dropping. Bitcoin rebounded from $92,000 to nearly $100,000 on Saturday but then began a wave of fluctuating declines, currently reported at $94,010, down 3.19% in the last 24 hours and down 10.35% over the past week; Ethereum fell below $3,300, down over 18% for the week, and altcoins faced significant declines. Bitcoin spot ETF funds saw a net outflow for the first time in 15 days. In the forex commodities sector, the U.S. dollar index rose a cumulative 0.76% this week due to the Federal Reserve's hawkish rate cuts, marking three consecutive weeks of gains, while non-U.S. currencies fell for the week; oil prices dropped over 2% for the week; spot gold fell 0.96% last week. This decline in risk assets was primarily due to panic selling brought on by the impact of diminished rate cut expectations. It reflects a market re-pricing of future rate cut expectations rather than a narrative of economic fundamentals deteriorating, which still provides long-term solid support for risk assets. This week, with the Christmas holiday in the European and American markets, overall liquidity is poor, which will further increase market volatility, and risk aversion sentiment is strong. eeee.com is a financial trading platform supporting assets such as cryptocurrencies, stock indices, commodities like gold, and forex, recently launching a USDT stablecoin wealth management product with an annualized return of 5.5% to provide investors with potential hedging options. 4E reminds you to pay attention to market volatility risks and to allocate assets wisely.
