US stocks faced a rocky start to the week, with the Dow Jones Industrial Average and the S&P 500 slipping slightly on Monday. The tech-heavy Nasdaq Composite also saw a decline of about 0.2% following a sharp fall in tech stocks at the end of last week.
Investors are eagerly awaiting crucial inflation data set to be released on Tuesday, which will play a significant role in shaping bets on potential interest rate cuts ahead of the Federal Reserve’s upcoming policy meeting on March 20. Federal Reserve Chair Jerome Powell has emphasized the importance of being confident that inflation is under control before making any adjustments to borrowing costs.
The Consumer Price Index report will be closely watched by market participants, as a surprise increase in inflation could dampen hopes for a shift in Fed policy that has been driving recent stock market gains.
In other market news, Bitcoin reached a new all-time high, surpassing $72,000 for the first time. This milestone brought the cryptocurrency’s gains for the year to around 70%. As a result, stocks with ties to the crypto market such as Coinbase, Marathon Digital Holdings, and MicroStrategy all experienced gains in response to Bitcoin’s rally.
Overall, the market remains on edge as investors brace for the upcoming inflation data and continue to monitor the impact of Bitcoin’s record-breaking surge on related stocks.
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