Mixed signals from non-farm data raise inflation concerns in the labor market
The U.S. Department of Labor reported on the evening of the 4th that non-farm employment rose by 228,000 in March, exceeding market expectations of 130,000 by 75% and setting a nearly three-month record high. However, the unemployment rate unexpectedly rose from 4.1% to 4.2%, reaching the highest point since November 2023, creating a contradictory phenomenon of 'high employment growth accompanied by rising unemployment rates.'
Federal Reserve Chairman Powell emphasized that the labor market remains in a 'good balance' state and is not the main source of current inflation. He acknowledged that uncertainty in trade policy is weakening business confidence but did not explicitly state whether it affects the rate cut path in June.
The U.S.-China tariff war escalates, with U.S. stocks evaporating over 5% in market value in a single day
China announced a comprehensive 34% retaliatory tariff on U.S. imports, rapidly escalating geopolitical tensions. The four major U.S. stock indices plummeted simultaneously:
The Dow Jones plunged 2,231.07 points (-5.50%), marking the largest drop since June 2020
The S&P 500 fell by 5.97%, the worst single-day performance since the pandemic crash in March 2020
The Philadelphia Semiconductor Index fell by 7.60%, with TSMC ADR down 6.72% and both Nvidia and Apple declining by over 7%
Bitcoin rebounded against the trend by 1.37% in a single day
In the face of panic in traditional markets, Bitcoin rebounded strongly from a low of $81,849, reaching a high of $84,620, with a 24-hour increase of 1.37%, before retreating to $83,666 before the deadline. This trend shows a significant decoupling from U.S. stocks, and there is much discussion in the market about Bitcoin's 'digital safe-haven' property.
Analysts pointed out that the borderless nature of crypto assets protects Bitcoin from direct impacts of policies from a single economy, coupled with the attractiveness of spot ETFs drawing institutional capital, strengthening Bitcoin's function as a hedge against traditional financial risks. A report from Standard Chartered Bank predicted that geopolitical turmoil would accelerate the shift of capital from traditional assets to the crypto market.
