U.S. Stock Index Futures Open Sharply Lower
U.S. stock index futures opened Monday with significant losses. Key declines include:
- Nasdaq 100 futures: Down 2.39%
- S&P 500 futures: Down 1.89%
- Dow Jones futures: Down 1.35%
The Federal Reserve recently paused its rate-cutting cycle, maintaining the federal funds rate at 4.25%–4.5%. Market expectations suggest an 82% probability rates will hold steady in March, with potential cuts later in 2025.
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Key Factors Driving the Sell-Off
New Tariffs: Former President Trump signed executive orders imposing:
- 25% tariffs on Canadian/Mexican imports
- 10% tariffs on Chinese goods
- Inflation Concerns: Analysts debate whether the Fed will hike rates amid persistent inflation.
Cryptocurrency Market Collapse
Bitcoin plunged below $100,000**, hitting a low of **$96,000 (-3.63%). Other major cryptocurrencies suffered steeper losses:
- Ethereum: -10%
- SOL: -6%
- XRP: -12%
- Dogecoin: -16%
Liquidation Carnage:
- 420,000 traders liquidated
- Over $1 billion in losses within 24 hours
Market analysts attribute the crash to tariff-induced economic uncertainty and recession fears.
Global Reactions
EU Criticism: The European Union condemned the tariffs, warning they could "fuel inflation and disrupt supply chains." No EU-specific tariffs have been announced yet.
Currency Markets: Non-USD currencies weakened, with the Canadian dollar falling sharply against the USD.
FAQs
Q: Why did Bitcoin crash?
A: The sell-off was triggered by macroeconomic fears from new U.S. tariffs and leveraged trading liquidations.
Q: Will the Fed raise rates in 2025?
A: Mixed opinions exist—some predict hikes by September, while others expect rate cuts.
Q: How long will market volatility last?
A: Uncertainty may persist until tariff impacts become clearer. Diversification is key.
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