Bitcoin tops $60,000, stocks fall ahead of inflation data

The United States stock market had a decline on Wednesday as investors exercised caution in front of an important inflation data that will shape expectations for interest rate reductions.

The decline in the Dow Jones Industrial Average (^DJI) was less than 0.1%, while the decline in the S&P 500 (^GSPC) was almost 0.2%. A decline of over 0.6% was seen in the Nasdaq Composite (^IXIC).

The closing days of February have been difficult for the stock market as new economic data has helped bring a market that was propelled by artificial intelligence optimism back to the reality of rising interest rates for longer periods of time

Investors have spent the whole week counting down to the PCE inflation number that will be released on Thursday. This measurement is considered to be very important in determining how soon the Federal Reserve will begin reducing interest rates.

A report on the gross domestic product for the fourth quarter of 2023 revealed that the economy expanded at a rate that was little slower than what was initially believed during the last three months of the year. On Tuesday, the second estimate of the gross domestic product for the fourth quarter came in at 3.2%, which is a decrease from the first figure of 3.3%.

In other asset markets, bitcoin (BTC-USD) extended its spectacular surge, breaking above $63,000 on Wednesday to move within striking distance of a new all-time high

This was the first time that bitcoin has ever broken above $63,000. As a result of the introduction of spot bitcoin exchange-traded funds (ETFs), the cryptocurrency has reached levels that have not been seen since the latter half of 2021.

Shares of Beyond Meat (BYND), a firm that produces plant-based meat, saw a short squeeze after the company disclosed its turnaround strategy, which caused the company's stock to rise by more than thirty percent.

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