The three major US stock indexes closed in the red before the Thanksgiving holiday. The PCE data released yesterday showed that inflation rose slightly, but the economy remained stable, and investors expect the Federal Reserve to maintain a gradual rate cut pattern. ETH surged more than 10%, Bitcoin rose over 4%, and the top 10 cryptocurrencies by market cap all performed well yesterday.
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ToggleThe US economy remains stable, with a slight rise in inflation
The revised data shows that US GDP growth in the third quarter was 2.8%, the same as the initial value, indicating that the economy maintained a strong growth momentum in the early fourth quarter.
The PCE price index, the Federal Reserve's preferred inflation indicator, rose 0.2% month-on-month and 2.3% year-on-year in October, up from 2.1% the previous month.
Although the increase in durable goods orders in October was less than expected, the number of people applying for unemployment benefits was 213,000, slightly lower than the upwardly revised 215,000 the previous week, indicating a stable labor market.
Peter Cardillo, chief market economist at Spartan Capital Securities, said:
"We all expected inflation to rise slightly, but inflation is not out of control. This is the key. This paves the way for a 25-basis-point rate cut in December, and then a pause may follow. But the pause is unlikely to be due to inflation data, but rather the uncertainty surrounding Trump's tariffs. I think the Fed will become cautious."
ETH surges, reaching a high of $3,684
ETH has surged recently, rising from $3,252 to a high of $3,684 this morning, a 24-hour gain of over 10%. Wintermute analysts said that capital flows are shifting from Bitcoin to ETH, and activity in the derivatives market indicates growing confidence in ETH's recent rally.
However, compared to Bitcoin, which has set multiple all-time highs this month, ETH's rally is still relatively lagging, and ETH still needs to rise 35% to reach its all-time high of $4,868 in 2021!
Thanksgiving holiday trading is light, and market volatility is expected to increase
The US stock market will be closed on Thanksgiving Day this Thursday, and will close early on Friday. Trading volume is expected to be relatively light this week, but the reduced volume may also lead to increased market volatility, and investors should be aware of trading risks.
