#federal-reserve

#federal-reserve

Tech stocks could remain under pressure after they led Wall Street lower on Tuesday, with the Nasdaq dropping 1.4% and the S&P 500 slipping 0.6%. Losses were widespread among chipmakers, where Nvidia slid 3.5%, AMD fell more than 5%, and Broadcom lost more than 3%. Palantir was the weakest S&P 500 performer, plunging 9%. The selloff reflected investor caution ahead of the Federal Reserve's annual Jackson Hole symposium, where Chair Jerome Powell is due to speak on Friday.

US equities advanced as the S&P 500 and Nasdaq reached record levels, driven by hopes for Federal Reserve rate cuts and soft consumer price data.

"We doubt that US tariffs will significantly affect inflation in the rest of the world, but if anything, the effect could be mildly disinflationary," said Simon MacAdam and Ariane Curtis.

"U.S. producer prices surged 0.9% m/m in July, far exceeding expectations of 0.2% and marking the largest monthly gain since June 2022. On an annual basis, PPI rose 3.3%, up from 2.4% in June, while core PPI jumped to 3.7% from 2.6%. The data shattered forecasts across the board, underscoring the inflationary impact of recent tariff policy and justifying Fed caution regarding rate cuts," George Vessey of Convera told clients this morning.

The Labor Department reported Thursday that its producer price index - which measures inflation before it hits consumers - was up 0.9% last month from June and 3.3% from a year earlier.

First of all the technicals and equities are crazy. [The] amount of cash on the sideline, the amount of buybacks relative to the IPO calendar-i.e. the demand is significant.

Gold prices fell as signs of de-escalation in the Ukraine conflict diminished safe-haven demand. Trump's upcoming meeting with Putin may further ease tensions.

Miran advocates for an extensive overhaul of Fed governance, suggesting shorter board member terms, presidential control, and nationalizing the Fed's regional banks to enhance oversight and support economic growth.

The Fed decided to keep rates steady this week at 4.25-4.5%, focusing investor attention more than usual. Numerous earnings reports were released during the week.

The Bureau of Labor Statistics is essential for providing credible information about jobs and the economy, and its independence must be protected at all costs to maintain trust.

With America's workforce in a demographic crunch and historic changes in immigration policy under way, it is "quite possible that the next five years will see no growth in workers at all."

The U.S. added fewer jobs than anticipated in July, leading to a total increase of only 73,000 jobs, significantly below expectations of over 100,000.

The dollar's stability is bolstered by positive trade developments, including potential tariff agreements between the US and Europe, which ease uncertainty in the market.