According to ChainCatcher, based on 4E monitoring, Powell's latest speech warned that tariff increases far exceeding expectations could face a dilemma of inflation and economic challenges, suggesting the Federal Reserve will prioritize controlling inflation and reiterate a wait-and-see stance, denying rate cuts during market crashes. Impacted by this hawkish rhetoric, the three major U.S. stock indexes collectively plummeted, with the Nasdaq dropping 3.07%, S&P 500 plunging 2.24%, and Dow falling 1.73%. Tech giants mostly declined, with Nvidia falling nearly 6.9% and Tesla dropping nearly 5%.
The crypto market performed relatively independently under the U.S. stock market's decline. Bitcoin briefly plummeted after Powell's speech but quickly recovered above $84,000, currently trading at $84,227, up 0.8% in 24 hours. Altcoins mostly rose, but market sentiment remains cautious, with investors wary of potential impacts from broader economic risks.
Foreign exchange and commodity markets saw increased volatility, with the U.S. dollar index falling over 1% after Powell's speech. The U.S. announced new sanctions on Iranian oil exports, causing oil to rebound nearly 2% to a two-week high. Gold prices maintained an upward trend on Wednesday, with spot gold rising nearly 3.5% and setting a new record.
During U.S. stock market declines, Trump repeatedly called for rate cuts, and market expectations for emergency Fed rate cuts grew. However, Powell's latest speech dampened market hopes. The CME FedWatch tool indicates an 83.2% probability that the Federal Reserve will maintain rates unchanged in May.
