Investors cheered Federal Reserve Chair Jerome Powell's Jackson Hole address, which gave a green light to buy risky assets on the hope the central bank is ready to cut rates, but took his dovish message with a note of caution as they see a risk of stagflation ahead and worry markets are over-optimistic. In his final address as Fed chair at the Jackson Hole, Wyoming, economic symposium, Powell hinted at a September interest rate cut but stopped short of committing, striking a careful balance between mounting job-market risks and lingering inflation worries. The speech on Friday came amid...
Economic activity in the US services sector accelerated in December, with the ISM Services PMI rising to 54.1 from 52.1 in November. This reading was higher than the market expectation of 53.3. Other details from the report showed that the Prices Paid Index, a component of inflation, rose to 64.4 from 58.2, while the Employment Index fell to 51.4 from 51.5. Market reaction The US dollar strengthened against other major currencies in an immediate reaction. At the time of writing, the USD Index was up 0.2% on the day at 108.52. Source: FXStreet
The ISM Manufacturing PMI rose 0.9 points from the previous month to 49.3 in December 2024, beating market expectations of 48.4. The reading reflected the slowest pace of contraction in the U.S. manufacturing sector since March's 50.3 reading, the only expansion in the industry since September 2022. A gauge measuring new orders came in at 52.5, reflecting the strongest level of new orders in 11 months, suggesting that lower output for manufacturers may be nearing a bottom despite the Fed's prolonged interest rate tightening. In turn, a gauge measuring the prices faced by businesses rose to...
Global stocks advanced on Thursday after a four-session drop to end 2024, while the dollar strengthened after economic data pointed to a U.S. labor market that remained on solid footing. On Wall Street, U.S. stocks were higher in the early stages of trading, with the S&P 500 on track to snap a four session streak of declines to end 2024. Data from the U.S. Labor Department showed the number of Americans filing new applications for unemployment benefits dropped to an eight-month low of 211,000 last week, below the 222,000 estimate of economists polled by Reuters. Gains were led by the...
The number of Americans filing for unemployment benefits fell to 219K in the week ending Dec. 29, 2024. That was down from the 222K estimate and from the previous weekly reading of 219K, which was revised down to 220K, the Labor Department said Thursday. Source: @Newsmaker23
Investors are expecting more gains for the U.S. stock market in 2025 after two straight standout years, fueled by a solid economy supporting corporate profits, moderating interest rates and pro-growth policies from incoming president Donald Trump. The benchmark S&P 500 is up roughly 24% year-to-date, even with a recent speed bump, and is on pace for its second straight year of gains exceeding 20%, lifted by megacap tech stocks and excitement over the business potential of artificial intelligence. Investors are more confident about the economy than this time a year ago, with consumers...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...