4E: The escalation of the tariff war threatens to overshadow the slowdown in inflation, leading to a decline in both the US stock market and the crypto market.

According to ChainCatcher news, monitoring by 4E indicates that the threat of escalating US-China tariff wars has overshadowed the favourable information regarding slowing inflation. Investor anxiety has regained dominance, and US stocks failed to maintain Wednesday’s significant rebound. On Thursday, the three major stock indices at one point fell by more than 5%. By the end of trading, the S&P 500 index closed down 3.5%, having briefly dropped 6.3%, nearing the 7% first-level circuit breaker, marking the largest intraday decline since March 2020; the Nasdaq fell 4.31%, and the Dow Jones dropped 2.5%. Major tech stocks collectively declined, with the seven giants index falling 6.67%. The strong rebound in the cryptocurrency market yesterday quickly turned around following the US stock market, with Bitcoin dropping from $82,000 to a low of $78,464, almost completely reversing the previous day’s gains. As of the time of writing, it is reported at $80,258, down 2.67%. Among the top ten mainstream coins, Ethereum performed the weakest, influenced by whale sell-offs and the decoupling of sUSD, briefly falling below $1,500, and as of the deadline, it is reported at $1,541, down nearly 6% in the last 24 hours. In the foreign exchange market, the US dollar index fell by 1.89%, marking the largest single-day decline since 2022. Crude oil prices dropped over 3% due to weak supply and demand expectations. With a surge in risk aversion, gold reached 3220 USD, setting a new historical high. The latest data showed that the US March CPI was lower than expected across the board, but the tariff shock has not yet fully felt, reassuring investors in the future. As Trump’s chaotic tariffs continue to disrupt markets, expectations of tightness in global supply chains have intensified, sparking broader fears of a recession. The market is skeptical that the 90-day tariff moratorium will lead to substantive negotiations.