Chairman Powell denied the possibility of a rate cut at the March FOMC meeting. U.S. stock plunge, impact on cryptocurrency market

2/1 (Thursday) morning market trends (compared to the previous day)
traditional finance

New York Dow: 38,150 -0.8%
Nasdaq: 15,164 -2.2%
Nikkei average: 36,286 +0.6%
USD/JPY: 147 -0.37%
Microsoft: $397.5 -2.42%
NVIDIA: $615.2 -2%
Dreamcom: 894 yen +13.7%

Today, the New York Dow and NASDAQ plunged. This is the largest daily decline since the beginning of 2024. Chairman Powell’s comments after the FOMC interest rate announcement were disgusting.
At this morning’s FOMC meeting, it was announced that interest rates would be frozen for the fourth time. The policy interest rate is maintained in the range of 5.25-5.5%.
Chairman Powell indicated that the monetary tightening cycle that began in 2022 after the interest rate announcement was largely over, but said, “Based on this meeting, I do not think there is a high possibility of an interest rate cut in March.” This poured cold water on the market’s optimistic scenario that expected an early interest rate cut in March.
Following the chairman’s remarks, CME FedWatch’s expectations for a March interest rate cut fell from 40% yesterday to 34.5%. As of December 29 last year, expectations for an interest rate cut have dropped significantly to 73%.

Source: CME

The Federal Reserve Chairman previously stated at a press conference, “The Federal Reserve is prepared to maintain the current federal funds rate target range for an extended period of time if deemed appropriate.” Policy rates may continue to remain high.
As recent indicators show, U.S. inflation continues to slow. The key PCE deflator that the Fed is focusing on was +2.9% year-on-year in December, and appears to be slowly moving toward its 2% target. “We do not believe it is appropriate to lower the guidance target range until we have more certainty.”
Connection: What is the ‘FOMC’, the US financial policy meeting that attracts the attention of investors around the world? | Easy to understand explanation

“While two important pieces of data are scheduled to be released by March, our inflation model does not predict further easing in some key inflation indicators,” Jeffrey Gundlach of DoubleLine Capital told CNBC. “I’ve never seen it before,” he said, predicting that the Fed’s first interest rate cut would be in June.
Today’s key market data includes:

U.S. ADP employment statistics for January: Up 107,000, below expectations of 150,000. This reflects the slowdown in the labor market.
U.S. Employment Cost Index (October to December 2023): Increased by 0.9% compared to the previous quarter, but this is the smallest increase since 2021. The Federal Reserve highlights this index as a clue to determining wage trends.
After the early interest rate cut was postponed, the dollar rebounded to 147 yen against the yen.
Semiconductor and AI-related stocks such as AMD and Microsoft are continuing their downward trend following yesterday’s ‘unsatisfactory’ financial performance.

Connected: AI/semiconductor stocks AMD and Microsoft fall after financial results | The 31st Financial Tankan
Connection: Why ‘Mitsui Sumitomo Card Platinum Preferred’ is rapidly increasing in popularity due to new NISA savings investment

Major economic indicators/events from this week onwards

2/2 (Fri) 22:30 US January unemployment rate
2/2 (Fri) 24:00 University of Michigan Consumer Attitude Index final value
2/8 (Thursday) 10:30 China January Consumer Price Index (CPI)
2/13 (Tue) 22:30 US January Consumer Price Index (CPI)

Special feature for cryptocurrency beginners
Cryptocurrency-related stocks fall

Coinbase｜$128.2 (-2%)
MicroStrategy | $501.2 (-3.5%)
Marathon Digital Holdings | $17.7 (-2.1%)

As Bitcoin returned to the $43,000 level, cryptocurrency-related stocks began to rise, but the U.S. stock index fell and entered negative territory due to position adjustments before the FOMC.
Connection: “The long-term target for Bitcoin price is $400,000” US SkyBridge founder predicts market price after halving

virtual currency market

Bitcoin: $42,621 -1.6%
Ethereum: $2,283.8 -3.4%

Cryptocurrency prices fell along with U.S. stocks following the FOMC Chairman’s remarks. Meanwhile, JUP attracted a lot of attention from the first day of its release.
Connection: Jupiter’s own virtual currency “JUP” launched, listed on Binance, etc. The price is temporarily $2

Connection:Bitcoin pauses before FOMC, Sui rises 20% compared to previous week

NISA, cryptocurrency-related stock special
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Chairman Powell denied the possibility of a rate cut at the March FOMC meeting. US stocks plummet, impact on virtual currency markets | 1st Financial Tankan appeared first on Our Bitcoin News.