4E: Powell Dampens Rate Cut Expectations, US Stocks Post Largest Bi-Monthly Decline, Market Sentiment Turns Bearish

BlockBeats News, November 18th: After experiencing a strong rally post-election, market sentiment cooled off last week, with Federal Reserve Chair Powell seeming to intend to slow down the pace of rate cuts, causing the excitement fueled by the "Trump Trade" to wane.

According to 4E monitoring, the three major U.S. stock indexes softened after hitting new highs together on Monday, and on Friday, the expectation of rate cuts took a big hit, putting pressure on U.S. stocks across the board. The S&P 500 index fell 2% in the past five trading days, erasing half of its post-election gains, the Dow fell 1.24% this week, and the Nasdaq fell 3.15%, marking the largest weekly decline since September.

Bitcoin broke through $93,000 on Wednesday to hit a new all-time high, but it started to consolidate following the U.S. stock market pullback and is currently ranging around $90,000. At the time of writing, Bitcoin was trading at $90,799, with a 7-day increase of nearly 12%. Other altcoins followed Bitcoin's volatility, with SOL continuing to benefit from MEME's frenzy, showing strong resilience and upward momentum.

In the forex and commodities sector, the cooling of Fed rate cut expectations strengthened the U.S. dollar, reaching over a one-year high. The U.S. Dollar Index rose 1.6% last week, marking a seven-week streak of gains. The strong dollar continued to pressure commodities across the board, with spot gold falling by about 4.6% last week, marking the largest weekly drop in three years and a nearly 9.3% pullback from its all-time high. U.S. oil fell nearly 5%, Brent oil fell by about 4%.

The current market focus is on post-Trump administration inflation concerns and the more hawkish outlook of the Federal Reserve. Powell's speech on Thursday was basically saying that Fed officials do not need to rush to cut rates, causing traders to slash rate cut expectations. The decline in sentiment, the uncertainty of monetary policy, has increased upward resistance in the market. eeee.com is a financial trading platform that supports assets such as cryptocurrencies, stock indices, bulk gold, and forex, and recently launched a USDT stablecoin financial product with an annualized yield of 5.5% to provide investors with potential hedging options. 4E reminds you to pay attention to market volatility risks and allocate assets reasonably.