Compiled the main content of Trump's speech yesterday,
Trump's speech may be the main reason for this decline.
Negative data led to the cancellation of interest rate cut expectations, and Trump's speech on 'new imperialism' triggered market panic, resulting in a significant drop.
Last night, the U.S. released employment data that exceeded expectations, while service industry inflation accelerated. Specifically, the JOLTS job openings for November unexpectedly increased by 259,000, reaching 8.098 million. The ISM Non-Manufacturing PMI rose from 52.1 in November to 54.1, while the price index rose from 58.2 to 64.4, reaching an 11-month high, indicating that inflationary pressures persist. This data suppressed market expectations for interest rate cuts, with the market expecting over a 95% chance that the Federal Reserve will not cut rates in January, leading to a significant drop in Bitcoin prices.
Subsequently, Trump announced a series of shocking plans during a one-hour press conference last night, which the media referred to as 'new imperialism.' He stated that he does not rule out using the military to seize Greenland and the Panama Canal, and if Denmark does not hand over Greenland, he plans to impose 'very high' tariffs on Denmark. In addition, he proposed incorporating Canada into U.S. territory through economic means. Such remarks sparked panic in the market, leading to further declines.
Senior political commentator Jonathan Chait analyzes that 'new Trump imperialism' is mainly a performative act that pressures allies through this type of 'bluffing' while also catering to a large number of ordinary voters' psychology.