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Fed Chair Jerome Powell tends to stick to the scenario of ‘ongoing rate increases will be appropriate’ as inflation is still as twice as big as the US 2% target. The next CPI report might not have so much love for Wall Street, despite its release on Valentine Day Tuesday February 14, as prices are expected to impose pressures on US consumers versus one month ago.
Bitcoin
Bitcoin benefited from Powell’s rollercoaster ride and was able to hold onto recent lows. Bitcoin could see further bullish momentum if there are signs that the labour market is cooling and as long markets do not have a much hotter-than-expected inflation report next week. Bitcoin has massive support at $20,500 and resistance at $25,000.
US Stocks
US stocks rallied on Tuesday after Powell’s comments indicating inflation has started easing. The Dow Jones Industrial Average added 265.67 points, or 0.78%, to finish at 34,156.69. The S&P 500 added 1.29%, to close at 4,164.00 points. The Nasdaq Composite posted the biggest daily gain, climbing 1.9% to end at 12,113.79.
The Dow gained more than 275 points, while the S&P 500 and Nasdaq Composite each traded up more than 1%. Those gains came as investors cheered Powell’s comments on disinflation, hoping they indicated the central bank could continue slowing on its interest rate hike campaign.
