The Nasdaq Composite soared past the 20,000 mark for the first time, driven by a surge in tech stocks and growing confidence in Federal Reserve rate cuts. This milestone follows the release of November’s CPI data and reflects broader market optimism.
The November jobs report revealed a surprising surge in hiring (227,000 jobs added), exceeding expectations and significantly outpacing October’s figures. This robust employment growth, coupled with higher-than-anticipated wage increases, has reduced the likelihood of an imminent interest rate cut by the Federal Reserve.
Following President Trump’s victory and strong economic data, the S&P 500 remains above pre-election levels. However, the Fed’s decision to potentially halt interest rate cuts could trigger a market correction due to a tightening monetary environment and rising Treasury yields. Experts weigh in on the potential impact.
The Consumer Price Index (CPI) rose to 2.6% in October, ending a six-month streak of decline. While this aligns with economist predictions, experts remain divided on the Federal Reserve’s next move. Some see a December rate cut as still possible, while others caution that the Fed might need to pause amidst persistent inflation pressures.
The annual inflation rate unexpectedly climbed to 2.6% in October, after six months of easing, raising concerns about the Federal Reserve’s ability to achieve its 2% inflation target. The report has led to speculation about a potential pause in interest rate cuts by the Fed, as policymakers remain vigilant about inflation pressures.
US stock futures are pointing to a negative opening on Wednesday after a record-breaking week, with investors focused on the release of the crucial Consumer Price Index (CPI) data. Despite the recent surge fueled by the GOP sweep and the Fed’s rate cut, profit-taking and investor caution are driving a slight pullback. The CPI report is expected to provide insights into the path of inflation and the Fed’s future policy decisions.
The past week has seen a flurry of economic and political news, from the Federal Reserve’s stance on interest rates to President Trump’s re-election and its potential impact on the US economy. This article dives into the top stories that dominated the headlines, offering insights into the current economic landscape and potential future implications.
The re-election of Donald Trump has brought back the question of whether he can remove Federal Reserve Chair Jerome Powell. While the law technically protects Powell, Trump could choose not to reappoint him in 2026. Powell’s recent dovish remarks, including a potential rate cut in December, have sparked debate among economists about the Fed’s independence and future rate trajectory.
The return of Donald Trump to the US political scene has triggered market volatility, impacting the EUR/USD exchange rate. Trump’s potential return to protectionist policies could fuel inflation, potentially leading to higher interest rates and a stronger US dollar. Meanwhile, the Federal Reserve’s recent rate cut has reinforced the greenback’s appeal. Technical analysis suggests a bullish outlook for EUR/USD, with a potential retracement to 1.0758 before resuming its ascent towards 1.0833.
The Federal Reserve’s decision to cut interest rates by 25 basis points has sparked contrasting opinions among leading economists. While some see it as a necessary move to address inflation, others warn of persistent inflation risks and question the effectiveness of the Fed’s strategy.
