Tag Archives: American stocks

Stock Recovery and Dollar Stability

Stock Recovery and Dollar Stability
The Asian markets witnessed a notable recovery, with regional markets improving and the dollar showing relative stability.

 

 

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Regional Gains

Regional Index Rises 0.7% Amid Gains in Japan, South Korea, and Australia
Asian markets recorded significant growth as the regional stock index rose by 0.7%,
supported by gains in Japan, South Korea, and Australia.
This performance followed a robust two-day rally in Wall Street.
Meanwhile, Chinese stocks showed mixed trends with mainland fluctuations,
and Hong Kong stocks saw slight declines at the start of trading.

Tensions between the United States and China impacted major companies like “Tencent Holdings,” whose shares fell by 7%,
and “Contemporary Amperex Technology,” which dropped 6% after being blacklisted by the U.S. Department of Defense.

 

 

 

 

 

Contract Stability

Global Market Recovery Amid Mixed Expectations
U.S. futures remained stable during Asian trading after major indices such as
the S&P 500 and Nasdaq 100 posted gains of 0.6% and 1.1%, respectively.
Nvidia reached a new record high, reflecting ongoing optimism in the technology sector.

In the currency market, the Dollar Strength Index trimmed its losses following reports suggesting a potential easing of U.S. tariffs
, later denied by former President Donald Trump.
The dollar stabilized in Asian trading, while the Japanese yen fell to its weakest level since July 2024,
with further declines anticipated ahead of U.S. jobs data.

 

 

 

 

 

Year Outlook

Prospects for 2025: Optimism and Caution
Market experts predict that the new year will require more disciplined investment strategies.
Mark Hackett from “Nationwide” noted that the “buy-the-dip mentality remains strong”
but cautioned against over-reliance on tech stocks for significant gains.

Additionally, global credit markets continue to rebound,
with the Asia-Pacific region selling $7 billion worth of bonds in a single day,
signaling strong activity in the global debt market.

Elsewhere, Bitcoin surpassed the $100,000 mark, while oil prices rose after a six-session decline.
U.S. employment data, expected on Friday,
could provide insights into labor market trends and the Federal Reserve’s monetary policy directions in the coming months.

Stock Recovery and Dollar Stability

The U.S. Economy in 2024

The U.S. Economy in 2024: Unexpected Strength Amid Major Challenges
Despite major economic and political challenges in 2024, the U.S. economy maintained strong momentum,
defying expectations of a slowdown and demonstrating exceptional resilience.

 

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Challenges

Defying Challenges: The U.S. Economy Remains Strong
Over the past few years, the U.S. economy has consistently surprised analysts by exceeding expectations of a slowdown, and 2024 was no exception. Despite the uncertainties surrounding the presidential elections, rising interest rates, and a slowing labor market, economic growth remained robust, solidifying the United States’ position as the leader among G7 nations, according to the International Monetary Fund.

However, the year was not without obstacles. Inflation took longer to subside, prompting the Federal Reserve to maintain its policy of high interest rates. Additionally, the housing and industrial sectors suffered from elevated borrowing costs, while household debt saw increased delinquency rates, particularly among credit card and mortgage holders.

 

Consumers

Consumers and Spending: Resilience Amid Cracks
American consumers were the key drivers of economic resilience in 2024. Wage growth, which outpaced inflation, bolstered household wealth, leading to a nearly 2.8% expansion in consumer spending during the year. However, cracks began to emerge as pandemic-era savings were largely depleted, and consumers increasingly relied on loans and credit cards to sustain spending.

 

 

 

 

 

Labor Market

The Labor Market and Future Challenges
The labor market showed warning signs with slowed job growth and a slight rise in unemployment, raising concerns about an impending economic turning point. Despite these challenges, the Federal Reserve remained optimistic after lowering interest rates in September. Unemployment rates stayed historically low, and wage growth held steady at around 4%, supporting household financial stability.

 

Inflation

Inflation and Interest Rates: Challenges in Housing and Industry
It remained stubborn throughout the year, with the Personal Consumption Expenditures Price Index rising by 2.8% in November.
Despite rate cuts, high borrowing costs continued to pressure the housing and industrial sectors.
Manufacturing faced significant setbacks, including layoffs and reduced infrastructure investments, impacting the sector’s resilience.

As 2024 concluded with relatively strong economic growth, challenges surrounding inflation, interest rates,
and labor market performance remain critical factors shaping the U.S. economy’s outlook for the coming year.

 

 

The U.S. Economy in 2024: Unexpected Strength Amid Major Challenges

Cautious Trading in Asian Markets

Cautious Trading in Asian Markets with Mixed Expectations for Currencies and International Stocks

Summary of Asian Markets: Limited Trading Ahead of Thanksgiving Holiday in the U.S.,
While Technology and AI Dominate the American Market

 

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Asian Markets

Asian markets experienced limited trading on Thursday, with reduced activity as the U.S. Thanksgiving holiday approached. Japanese, Australian, and South Korean stocks saw slight gains, while the Japanese yen trimmed the gains it recorded in the previous session.

 

Key Highlights from Asian Markets:

  • Stock indices in Japan, Australia, and South Korea edged higher.
  • U.S. futures showed minor gains after the S&P 500 index fell by 0.4% on Wednesday.
  • Bond yields in Australia and New Zealand declined, mirroring the movement of U.S. Treasury bonds.

 

Japanese Yen: Pressure from Interest Rates and Market Expectations

The Japanese yen weakened on Thursday following strong gains of over 1% on Wednesday, marking its highest level since October. This movement aligns with growing expectations that the Bank of Japan may take decisive action to raise interest rates in its upcoming meeting.

 

Expert Opinion:
“Win Thin,” Global Head of Market Strategy at Brown Brothers Harriman, stated, “The yen is unlikely to remain below the 150 level for long, given the wide interest rate differentials favoring the dollar.”

 

Other Currency Movements: Peso Gains and Won Weakens

  • Mexican Peso: Rose following positive comments from U.S. President-elect Donald Trump regarding relations with Mexico.
  • South Korean Won: Declined after an unexpected rate cut by the Bank of Korea by 25 basis points to 3%.

 

China: Economic Stimulus Expectations and Yuan in Focus

  • Chinese Stocks: Recorded gains, supported by speculation over an important economic meeting expected next month,
    which may result in additional stimulus measures.
  • Chinese Yuan: A report by JPMorgan projected a 10%-15% depreciation in response to trade tensions.

 

 

 

U.S. Market

Technology and AI Leading the Way

Despite declines in some stocks, such as Microsoft due to antitrust investigations,
the S&P 500 index continued its strong performance this year, with a gain exceeding 25%.
This is attributed to:

  • Growth in the technology sector.
  • Increased focus on artificial intelligence applications.
  • Sustained resilience of the U.S. economy.

 

Emerging Markets Outlook: Upcoming Trade Pressures

A memo from JPMorgan predicts that emerging markets will face significant pressure due to new trade policies, particularly from the U.S.

 

Key Expectations:

  • Growth: Slower growth in emerging markets, down to 3.4% in 2025 from 4.1% this year.
  • Currencies: Average currency depreciation of 5% for emerging markets in the first half of 2025.

 

Commodities and Cryptocurrencies

  • Oil: Remained stable amid expectations that OPEC+ will delay production increases.
  • Bitcoin: Held steady around $96,000, continuing its recent gains.

 

In Conclusion, the current market landscape is marked by cautious volatility with mixed expectations for global currencies and stocks,
as central bank policies and developments in international trade remain in the spotlight.

 

 

Cautious Trading in Asian Markets with Mixed Expectations for Currencies and International Stocks

Slowing U.S. Job Growth in October

Slowing U.S. Job Growth in October with Stable Unemployment Rate

The U.S. labor market data for October revealed mixed employment indicators,
with the economy adding only 12,000 new jobs, significantly below the expectations of 113,000.

 

 

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Jobs: 

The September report initially showed 254,000 jobs added, but this was revised down to 223,000.
The unemployment rate remained steady at 4.1% in October, aligning with market expectations and the previous reading for September.
On the wage front, the average hourly wage increased by 0.4% on a monthly basis, surpassing the expected 0.3%, while wages grew 4.0% annually, in line with forecasts.

 

 

 

Boeing: 

Boeing raises $23.5 billion in a massive deal that brings substantial profits for banks ahead of the U.S. elections.
The $20 billion capital increase carried out by Boeing delivered significant gains to four major banks—Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase—with each bank expected to earn up to $75 million for their roles as joint lead arrangers in the deal, according to Boeing’s filings with the U.S. Securities and Exchange Commission.

This week, Boeing raised approximately $23.5 billion through one of the largest equity sales ever made by a public company, aiming to strengthen its balance sheet and avoid a potential downgrade to junk credit status. The capital raise included the sale of nearly $18.5 billion in common stock, along with $5 billion in depositary shares representing stakes in mandatory convertible preferred stock.

 

 

 

Slowing U.S. Job Growth in October with Stable Unemployment Rate

A $23.5 Billion Deal Grants 4 U.S. Banks Massive Profits

A $23.5 Billion Deal Grants 4 U.S. Banks Massive Profits from Boeing’s Capital Raise

Boeing has announced a massive $20 billion capital increase,
resulting in huge profits for four of the largest U.S. banks. As equity issuances slow down due to the upcoming U.S. presidential elections,
these banks have managed to secure significant gains from their roles in arranging this financial deal.
In this article, we shed light on the details of this deal and the profits earned by these banks.

 

Topic

Deal Details

Significance of the Deal

The Role of the Four Banks

Conclusion

 

 

 

 

Deal Details

A group of four American banks, namely Goldman Sachs, Bank of America, Citigroup, and JPMorgan Chase, are set to earn up to $75 million each for their roles as joint lead arrangers in Boeing’s capital raise.
The deal amounted to approximately $23.5 billion, which included nearly $18.5 billion in common stock sales,
plus an additional $5 billion in depositary shares representing a stake in mandatory convertible preferred stock.

 

 

Significance of the Deal

This capital raise is one of the largest equity sales ever by a publicly traded company.
Boeing took this step as part of its efforts to strengthen its balance sheet and avert a potential downgrade of its credit rating to junk status.
Additionally, this transaction marks a significant shift in market sentiment,
as stock issuances have slowed down with the approach of the U.S. elections.

 

 

 

 

 

 

 

The Role of the Four Banks

The four major banks played a crucial role in the success of the deal, by arranging and coordinating the stock sale.
Each bank acted as a key coordinator, ensuring Boeing could secure the necessary liquidity despite volatile market conditions.

 

 

Conclusion

This deal highlights the role that large banks continue to play in steering and supporting financial markets,
especially during critical times.
Despite challenging circumstances, equity issuances remain a lucrative opportunity for banks to generate significant profits.
As attention turns to the U.S. presidential elections, this deal will stand out as a milestone in the financial markets of 2024.

 

 

A $23.5 Billion Deal Grants 4 U.S. Banks Massive Profits from Boeing’s Capital Raise

U.S. Stocks Register Their Steepest Weekly Decline Since March

U.S. Stocks Register Their Steepest Weekly Decline Since March: Renewed fears of an economic slowdown and the Federal Reserve’s slow
response resurfaced after the August jobs report, pushing markets into negative territory.
Stocks posted substantial declines, marking their weakest weekly performance since March 2023.
Bonds also fell, driven by disappointing labor market data,
heightening investor anxiety about the economic outlook.

 

Contents

Decline in U.S. Stock Indices

Federal Reserve Rate Expectations

Labor Market Data and Reactions

Decline in Stocks and Key Sectors

The Fed’s Cautious Approach

How Does Wall Street View the Jobs Report

 

 

 

Decline in U.S. Stock Indices

The S&P 500 index dropped by 1.7%, while the Nasdaq 100 fell by 2.7%,
as data showed job growth was 23,000 jobs short of expectations in August.
Yields on two-year Treasury bonds decreased by up to 15 basis points before slightly recovering.

 

Federal Reserve Rate Expectations

Meanwhile, Wall Street’s bets on a 50 basis point Fed rate cut weakened
after Federal Reserve Governor Christopher Waller stated he was “open” to a larger reduction.
Scott Wren of Wells Fargo Investment Institute noted
that markets are now focusing on how accommodative
the Fed will be with its monetary policy and the speed of the economic slowdown,
expecting short-term volatility.

 

Labor Market Data and Reactions

Non-farm payrolls increased by 142,000 jobs in August,
the lowest three-month average since mid-2020.
The unemployment rate fell to 4.2% for the first time in five months,
reflecting the impact of temporary layoffs.
Stephen Blitz of TS Lombard indicated that the economy is nearing a critical turning point,
and upcoming Fed decisions on rate cuts will be crucial.

 

 

 

Decline in Stocks and Key Sectors

All major groups in the S&P 500 fell,
with significant companies like Nvidia dropping 4.1%
and Broadcom declined by 10% due to disappointing forecasts.
The Dow Jones Industrial Average fell by 1%,
and the Russell 2000 index of small-cap companies dropped by 1.9%.
Wall Street’s fear gauge, the VIX, rose to 22 points,
while 10-year Treasury yields stabilized at 3.72%.

 

The Fed’s Cautious Approach

Traders expect a rate cut of about 25 basis points in September,
with slim chances of a larger cut.
Krishna Guha of Evercore suggests that the Fed leans toward a gradual cut in September,
with the potential for accelerated reductions in November if employment risks increase.

 

How Does Wall Street View the Jobs Report?

David Donabedian of CIBC Private Wealth believes
the report highlights the risks of a soft landing without entering a recession,
with markets continuing to look for signs of the slowdown’s extent.

 Seema Shah of Principal Asset Management states that the Fed’s
decision will hinge on balancing inflation and recession risks,
favoring a cautious 25 basis point cut.

 Andrew Brenner of NatAlliance Securities considers
the report gives the Fed room to move in any direction
but believes the Fed is currently lagging behind the market’s pace.

In conclusion, expectations are growing for the Fed to begin a cycle of monetary easing,
but the size and pace of action remain uncertain,
reflecting significant challenges facing policymakers during
this sensitive phase of the economic cycle.

 

U.S. Stocks Register Their Steepest Weekly Decline Since March 2023

Nvidia CEO Loses $10 Billion as Chip Stocks Plunge

Nvidia CEO Loses $10 Billion as Chip Stocks Plunge: Jensen Huang, the Chief Executive Officer of Nvidia Corp., recently faced one of the most significant financial setbacks of his career.
In a single day, his net worth plummeted by $10 billion,
marking the largest wealth decline he has experienced
since the Bloomberg Billionaires Index began tracking his fortune in 2016.
This staggering loss was driven by a sharp downturn in Nvidia’s stock,
coupled with news that the U.S. Department of Justice (DOJ)
had issued subpoenas to the company as part of an ongoing antitrust investigation.

 

Content

The Wealth Plunge

DOJ Investigation

Huang’s Journey
Conclusion

 

 

 

The Wealth Plunge: A Historic Drop for Jensen Huang

On Tuesday, Huang’s net worth fell to $94.9 billion,
a drop of approximately $10 billion in just one day.
This dramatic decline coincided with a 9.5% fall in Nvidia’s stock price,
a company that Huang co-founded and transformed
into one of the leading players in the global semiconductor industry.
The drop was not just a reflection of market volatility
but also a reaction to heightened regulatory scrutiny from the DOJ.
The investigation reportedly revolves around Nvidia’s
dominant position in the market and its business practices,
which some officials believe could be stifling competition.

 

DOJ Investigation: Escalating Antitrust Concerns

According to a Bloomberg report,
the DOJ has issued subpoenas to Nvidia as part
of its probe into potential antitrust violations.
The subpoenas are legally binding documents requiring
recipients to provide information that could be pivotal in the government’s investigation.
This move signifies a critical step toward
a possible formal complaint against the tech giant.
The DOJ’s concern lies in Nvidia’s market practices,
particularly its influence on the supply chain
and potential penalization of customers who do not exclusively use its artificial intelligence chips.

Nvidia’s success has made it a key player in the semiconductor industry,
particularly in the AI sector,
where its chips are considered unparalleled in performance.
However, this dominance has drawn scrutiny,
as antitrust officials worry that Nvidia may be making
it increasingly difficult for other suppliers to compete,
thereby limiting customer choices.

 

 

Huang’s Journey and Nvidia’s Market Dominance

Despite the recent setback, Huang remains the world’s 18th richest individual,
with his net worth having grown by $51 billion year-to-date,
even after Tuesday’s steep decline.
Born in Taiwan and raised in Thailand, Huang emigrated to the United States,
where he co-founded Nvidia in 1993.
Since then, Nvidia has grown into the world’s third-largest company by market value,
driven by the superior performance of its
products and the challenges faced by competitors in developing viable alternatives.

In response to inquiries about the ongoing probe,
Nvidia has defended its market position,
stating that its success is due to the quality of its products,
which deliver faster and more efficient performance than those of its rivals.

 

Conclusion

The recent events mark a tumultuous period for Nvidia and its CEO, Jensen Huang.
As the DOJ intensifies its scrutiny of Nvidia’s business practices,
the company faces not only financial challenges
but also the potential for significant legal battles ahead.
For Huang, whose fortune has been built on Nvidia’s unparalleled
growth and innovation,
the road ahead could redefine his company’s
role in the tech industry and its impact on global markets.

 

Nvidia CEO Loses $10 Billion as Chip Stocks Plunge

S&P 500 Index Rises for the Fourth Consecutive Month

S&P 500 Index Rises for the Fourth Consecutive Month: Global financial markets continue to experience ongoing fluctuations that impact the movement of stocks and indices.
The S&P 500 index is at the forefront of these indicators,
affected by economic and political volatility. In this report,
we review the performance of the U.S. markets in August
and look ahead to what investors can expect in the upcoming month of September,
traditionally considered one of the toughest months for stocks.

 

Contents

Performance of U.S. Indices in August

A Historical Look at September’s Performance

Seasonal Challenges of September

Election Year and Its Impact on Markets

Future Expectations and Economic Challenges

Conclusion

 

 

 

 

Performance of U.S. Indices in August

U.S. stock indices experienced a late recovery at the close of August trading,
with the S&P 500 rising by 1% in the last ten minutes of trading.
This positive performance marks the fourth consecutive month of gains,
reflecting resilience in the U.S. economy despite global fluctuations.
With this increase, investors are now focusing on the upcoming
Federal Reserve meeting in September, which may include a decision to cut interest rates.

 

A Historical Look at September’s Performance

Historically, September is considered one of the worst months for U.S. stocks.
Since 1950, the S&P 500 has experienced an average drop of 0.7%,
closing positively only 43% of the time.

In the past four years, the index has seen notable declines during this month.
This trend is partly attributed to investors returning from summer holidays,
often reassessing their portfolios with a defensive approach.

 

Seasonal Challenges of September

Data analysis shows that the average actual volatility
of the S&P 500 in September historically exceeds that of August by 1.5 points.
Companies also face challenges at the end of the third quarter
as they enter periods that restrict stock buybacks,
potentially affecting their ability to support stock prices.
These challenges come as markets prepare for crucial economic data releases,
such as the monthly jobs report.

 

 

 

 

Election Year and Its Impact on Markets

As 2024 approaches its end, a year that includes a U.S. presidential election,
concerns about market performance are intensifying.
Historically, the Dow Jones has performed poorly in
September during election years compared to non-election years,
adding pressure on investors closely monitoring market and economic developments.

 

Future Expectations and Economic Challenges

With expectations of interest rate cuts and continued improvement in economic data,
many investors hope that concerns about recession and inflation will ease.
Attention remains focused on the monthly jobs report,
which could play a pivotal role in determining market direction in the coming period.
If the data shows improvement, it could help alleviate short-term recession fears.

 

Conclusion

As September approaches, investors remain vigilant and watchful of market developments.
Despite seasonal difficulties and economic challenges,
there is still optimism that markets can overcome these hurdles and continue to perform positively.

 

S&P 500 Index Rises for the Fourth Consecutive Month

 

American financial markets are breaking records as interest rate

American financial markets are breaking records as interest rate cuts are anticipated.

 The “S&P 500” breaches the 5200 point barrier, marking an unprecedented new high.

 

 

 

Topic

details

Evaluating the Federal Meeting

Market performance

 

 

 

 

 

details

American stocks saw a massive leap, reaching new record levels following signals from the Federal Reserve about its direction towards reducing interest rates for the first time since the onset of the pandemic crisis. In a significant shift, the “S&P 500” index crossed the 5200 point threshold amid expectations that the end of the Federal Reserve’s more aggressive monetary tightening policy of this generation will continue to boost the profits of American companies.

 

This increase was almost broad-based, with stock prices of sectors that had lagged this year, such as small-cap stocks, also rising. Short-term Treasury bonds outperformed, as traders now see a higher likelihood of an interest rate cut in June. Federal officials maintained their forecasts for three interest rate cuts during the current year, signaling a move towards slowing the pace of reducing the central bank’s bond holdings, in addition to hinting that they are not disturbed by the recent rise in inflation.

 

While continuing to highlight the officials’ desire to see more evidence of price declines,
Federal Reserve Chair Jerome Powell also said it would be appropriate to start easing monetary policy “sometime this year.
” Chris Zaccarelli from the “Independent Advisor Alliance” noted that “Overall,
the takeaway from the press conference is that the absence of new news is news in itself,
meaning the markets still have the green light to continue rising…

 

This Federal Reserve will not stand in the way of the market’s uptrend.
” The “Nasdaq 100” index rose by 1.2%, driven by strong revenue forecasts from “Micron Technology” thanks to the increasing demand for artificial intelligence devices.
The yield on two-year bonds dropped seven basis points to 4.6%, and the dollar’s exchange rate declined.

 

 

 

 

 

 

Evaluating the Federal Meeting

From Wall Street’s perspective, the recent Federal meeting was assessed.
Krishna Guha from “Evercore” considers that the markets did not experience significant fluctuations following this meeting,
with Federal Chair Powell continuing a cautious approach supportive of stock prices,
stemming from the initial release of Federal data.
The primary message is that the Federal is keen to cut interest rates but is waiting for the right time to do so responsibly,
maintaining its plans for three rate cuts during the current year starting from June.

 

Peter Boockvar sees Powell leaning towards easing today,
indicating that even a strong job market would not halt the beginning of interest rate cuts,
which led to the decrease in short-term bond yields.

 

Sonu Varghese from “Carson Group” speaks of a complete leaning towards monetary easing,
leaving the door open for interest rate cuts even amid expectations of a slight increase in inflation and further economic growth.

 

Neil Birrell from “Premier Miton Investors” emphasizes the Federal’s effort to achieve a smooth economic downturn,
while Sima Shah from “Principal Asset Management” points out that the Federal is willing to risk cutting interest rates even before getting closer to the inflation target, which carries potential risks. Whitney Watson from “Goldman Sachs Asset Management” sees major central banks heading towards interest rate cuts in the coming months, benefiting high-quality fixed income bonds.

 

Michelle Cluver from “Global X” considers the recent data very encouraging,
increasing the likelihood of the Federal cutting interest rates in June,
while Jason Pride from “Glenmede” emphasizes that patience is currently the Federal’s preferred strategy,
keeping a continuous focus on inflation.

 

Christian Hoffman from “Thornburg Investment Management” cautions that fixed income will continue to move between expectations of lower interest rates,
which is good for bonds.

 

 

 

Market performance:

  • “S&P 500” increased by 0.9%
  • “Nasdaq 100” rose by 1.2%
  • “Dow Jones” went up by 1%
  • The immediate Bloomberg dollar index fell by 0.4%
  • “Bitcoin” price increased by 3.1%
  • The value of “Ether” rose by 2.9%
  • The spot gold price climbed by 1.2%

 

 

 

American financial markets are breaking records as interest rate

The release of the US labor market data

The release of the US labor market data

The markets are eagerly anticipating the release of the US labor market data, and this is how investors view it.

 

Topic

details

Importance of upcoming labor market data

 

 

 

 

 

 

details

In the beginning of the current quarter in 2024 and during this week’s trading sessions,
participants in the financial markets are eagerly awaiting the US labor market data.
This data has proven to be exceptionally efficient in the past and is a key factor supporting
the decisions of the members of the US Federal Reserve regarding keeping interest rates unchanged without intervention.
Federal Reserve member Barkin clarified in his latest statements that
the US bank is not compelled to cut interest rates unless we reach targets around 2%,
based on the strength of the US labor market.

 

On Friday, March 8th, we will have the latest reading of the US labor market data,
which showed excellent progress during the last reading.
Private non-farm employment data revealed an extremely positive number of around 353,000, amid a fluctuating unemployment rate of around 3.7%.
As for wage growth, it showed an increase of around 0.6%.
These data contributed to lowering investors’ expectations in the past that the Fed would cut rates in May before expectations rose again.

 

Experts anticipate negativity for the US labor market during the current week,
with expectations for private non-farm employment data to decline to 190,000 jobs and the possibility of wage growth dropping to 0.2%.
This comes amidst expectations for unemployment rates to remain unchanged at around 3.7%.

 

 

 

Importance of upcoming labor market data:

The US Federal Reserve is reassured so far as inflation is declining, recording 2.8% compared to the previous week’s 2.9%.
This is attributed to the positivity of the labor market and the absence of actual risks apparent in previous figures indicating the risks of high interest rates.

 

If the upcoming data indeed responds to expectations and turns out to be negative,
aligning with investors’ expectations of an early Fed interest rate cut,
it may reinforce the idea that the US bank will continue with the expectations of three interest rate cuts during the current year.
This could contribute to the weakness of the US dollar and strengthen the position of US stocks in maintaining their positive movements.

 

Contrary to expectations and presenting positive results, it may distance the possibility of a US interest rate cut this year,
which could carry a positive pricing for the US dollar index.

 

 

The release of the US labor market data