All articles tagged with #fed rate cuts
Asian equities rebounded with tech/semiconductor names rallying after a recent selloff, aided by softer U.S. payrolls which boosted expectations of Fed rate cuts later in the year and by subdued oil prices that improved risk sentiment across the region.
US May nonfarm payrolls are expected to rise by about 85,000, well below last month’s 115,000, with the unemployment rate seen near 4.3% (potentially rising to 4.4%). A softer jobs report could revive bets on a Fed rate cut this year, supporting risk assets, including Bitcoin, which was hovering around $62,500 as traders weigh the data against the policy outlook.
U.S. Treasury yields fell after reports that a plan to end the Middle East conflict was discussed, with the 10-year around 4.324%, the 2-year about 3.879%, and the 30-year near 4.895%, as investors weigh inflation risks and the potential for fewer Fed rate cuts amid energy-price declines and mixed geopolitical signals.
Gold slid for a sixth straight session to around $4,869/oz as a surge in energy prices and hotter inflation dimmed expectations for Federal Reserve rate cuts this year. Oil rose on Middle East risk, risk assets softened and the dollar strengthened, helping push bullion lower despite a-year-to-date gains of more than 10%. Traders expect the Fed to keep rates unchanged at its upcoming meeting, with longer-term gold support coming from inflation concerns and stagflation fears.
Silver slips as crude oil rallies above $100, lifting inflation fears and pushing Fed rate-cut expectations toward September; higher yields and a stronger dollar are prompting traders to trim long silver positions ahead of possible rate relief.
Asian shares fell, on track for a second weekly decline as the Iran-Israel conflict keeps oil near $100, prompting investors to pare Fed-rate-cut expectations to around 20 basis points and lifting the dollar. Equities and yields moved with oil and inflation worries in focus ahead of next week’s central-bank meetings, with the MSCI Asia-Pacific index down about 0.5% for the week and major markets like Japan, Korea and Taiwan lingering in the red.
U.S. stock indices opened lower after February payrolls unexpectedly fell by 92,000 (unemployment up to 4.4%), while oil prices surged amid renewed Iran-related tensions. The S&P 500 slid about 1.4%, the Nasdaq around 1.5%, and the Dow roughly 1.7%, as sentiment was hammered by higher energy costs and ongoing Middle East risks that could influence inflation and Fed policy expectations.
Gold climbed over 2% after January CPI rose 0.2%—below expectations—reigniting bets the Fed will cut rates this year, with spot prices near $5,030/oz and April futures around $5,051/oz. Silver also rose about 2% to $76.88/oz, while January jobs data showed 130,000 new hires. Markets estimate roughly 63 basis points of cuts this year, with the first move expected in July per LSEG. China’s gold demand stayed strong ahead of Lunar New Year, and India saw a discount market.
Experts predict that mortgage rates in 2026 will be influenced by inflation, Treasury yields, and Federal Reserve policies, with potential for rates to stabilize around current levels or decline if inflation cools, but they could also rise if economic growth accelerates. Buyers are advised to focus on affordability and long-term plans rather than trying to time the market.
The US dollar declined despite stronger-than-expected Q3 GDP growth, as traders remain cautious about potential Fed rate cuts next year amid weakening consumer confidence and geopolitical factors like yen intervention threats, leading to a broader decline in the dollar index and currency fluctuations.
The US dollar declined amid expectations of Federal Reserve rate cuts next year despite strong GDP growth data, with market sentiment influenced by potential dovish policies and Japan's hints at intervention to manage yen weakness.
The US dollar experienced its worst year in eight, declining 9% due to expectations of Fed rate cuts and global economic shifts, with most analysts predicting further weakening in 2026 as other major economies gain momentum and central bank policies diverge. Near-term rebounds may occur due to AI enthusiasm and US growth, but the overall trend points to a weaker dollar driven by global growth convergence and monetary policy divergence.
Economist Diane Swonk warns that despite positive market signals, the U.S. economy is more fragile than it appears due to persistent inflation, data collection issues, and a bifurcated consumer base, suggesting a potential slowdown and challenging holiday season ahead.
Asian stocks rose on expectations of U.S. Federal Reserve rate cuts and Australian shares hit record highs after weak jobs data increased bets of further easing by the Reserve Bank of Australia, despite ongoing US-China trade tensions.
Global markets declined amid concerns over the prolonged U.S. government shutdown and doubts about upcoming Fed rate cuts, with Asian and European stocks falling and cautious sentiment prevailing in the U.S., while Fed minutes suggest a more cautious approach to rate adjustments.