Powell's dovish tone, non-farm payrolls boom, Nasdaq rises and then falls

This week, the#NASDAQclimbed amid volatility. The Fed's dovish interest rate hikes and dovish comments from#Powellenergized risk markets, but a strong#NonfarmPayrolls report curbed the Nasdaq's gains.

On Wednesday, after raising interest rates seven times last year, Fed Chairman Powell acknowledged for the first time that deflationary pressures have emerged, and at the same time slowed the rate hike to 1% as expected. Powell's announcement proves that the process of deflating inflation has begun, and also indicates that the second round of interest rate hikes is coming to an end. ...

In addition, the#nonfarmdata released on Friday far exceeded expectations. Data released by the U.S. Bureau of Labor showed that the number of new non-farm jobs in January was 517,000, far exceeding the expected 185,000. The unemployment rate remained at a nearly 50-year low of 3.4%, and average hourly earnings increased by 4.4% year-on-year, slightly higher than the expected 4.3%, highlighting the resilience of the U.S. labor market.

The strong non-farm payrolls report extinguished the market's expectations that the Federal Reserve (Fed) will turn dovish in the future. The market is worried that the Federal Reserve will continue to tighten policy and push interest rates to above 5%, causing major U.S. stock indexes to fall after opening lower. To sum up the week,#NASDAQled the way with a 3.3% increase, breaking through 12,000 points in one fell swoop;#DOWended slightly lower.

The performance of the broader cryptocurrency market was slightly less impressive.#Bitcoinand#Ethereumcontinued last week’s ascending channels, hovering around $23,000 and $1,600. In the short term, without stronger catalysts, cryptocurrencies are likely to see a correction.

In addition, $LUNC and $USTC, which were previously labeled with warning labels on Binance’s trading platform due to a collapse and a dispute between their founder Do Kwon and the South Korean authorities, both soared after Binance decided to remove the warning labels on the trading platform. LUNC surged by about 25%, and USTC once soared by 70%.