Under the significant drop two weeks ago and the favorable CPI data from last week, the US stock market temporarily improved from deep declines, recovering some of its losses, but still remains in a downward trend. Trump's theory of using layoffs and a tariff war to achieve economic recession to pressure the Federal Reserve is gaining more traction in the market, at least it seems so in terms of results. However, US valuations are still in a downward probing phase, with historical data indicating there is still room for decline. The reasons driving the downward adjustment of valuations, including the chaotic tariffs, may trigger inflation, raising concerns that the US economy could enter a stagflation state, which have not been alleviated; the chaos creator Trump is not prepared to back down, and the Federal Reserve Chairman is still reducing holdings based on data. Amidst the chaos, risk aversion sentiment has risen, pushing gold prices to briefly break through the $3,000 mark. Currently, the US stock market has entered a correction space, but the outlook for inflation and interest rate cuts remains unclear, especially as the impacts of Trump's tariffs and layoffs are still not over, leaving a significant probability for the market to continue downward corrections to stabilize asset valuations in the midst of a chaotic market background. The inflow of stablecoins is decreasing, while ETF outflows have increased, but the existing capital entering exchanges has been transformed back into buying power, allowing BTC prices to return to $83,000. Currently, the existing capital in exchanges has seen a slight rebound, but this rebound can only be viewed as a small amount of capital bottom-fishing behavior, which is not enough to become a force driving market reversal. Trump has repeatedly mentioned in public interviews that the US economy will experience a period of pain, with the goal of achieving price stabilization and interest rate cuts. The quickest method is through a trade war, allowing the US to achieve better trade conditions at the cost of economic recession. At this point, the US economy also falls into recession, and the Fed must cut interest rates to save the job market and the US economy, which will also cool inflationary pressures. #FederalReserve