Global stock markets faced declines as Federal Reserve Chair Jerome Powell signaled no urgency to reduce interest rates. Additionally, investor unease grew over President-elect Donald Trump\u2019s cabinet appointments, further dampening sentiment.<\/p>\n
European Markets Under Pressure<\/p>\n
Europe’s Stoxx 600 index fell 0.3%, marking its fourth consecutive weekly drop. Pharmaceutical stocks were among the hardest hit after Trump appointed a prominent vaccine skeptic to a key health-policy role. Shares of vaccine makers Sanofi, GSK Plc, and AstraZeneca Plc declined in response to the controversial move.<\/p>\n
U.S. Markets Extend Losses<\/p>\n
U.S. equity futures signaled another day of declines, with Nasdaq 100 futures falling 0.9%. Drugmakers Moderna Inc., Novavax Inc., and BioNTech SE saw notable premarket losses. However, Domino\u2019s Pizza Inc. bucked the trend, climbing after Berkshire Hathaway Inc. revealed a stake in the restaurant chain.<\/p>\n
The S&P 500 has now lost approximately one-third of its post-election gains as optimism over corporate growth under Trump wanes. The shift in sentiment comes alongside concerns over slower-than-expected interest rate cuts. Persistently high inflation and Powell\u2019s cautious tone on monetary easing have reshaped market expectations.<\/p>\n
Rate-Cut Odds and Treasury Yields<\/p>\n
Powell\u2019s comments reduced the probability of a December rate cut to below 60%, down from 80% the previous day. Treasury yields steadied after rising sharply in response to the Fed\u2019s higher-for-longer interest rate outlook.<\/p>\n
Mathieu Racheter, head of equity strategy at Julius Baer Group, noted that markets are adjusting to the revised rate-cut trajectory. However, he added, \u201cSome controversial cabinet announcements obviously do not help the market.\u201d<\/p>\n
The Dollar and Bitcoin React<\/p>\n
The U.S. dollar remained strong, supported by the Fed\u2019s stance, although it stayed below recent two-year highs. The greenback is poised for its seventh consecutive weekly gain, with more clarity expected following U.S. retail sales data and speeches from Fed officials later in the day.<\/p>\n
Bitcoin, another asset tied to so-called “Trump trades,” also pulled back after hitting a record $93,000 earlier this week. Market enthusiasm around potential crypto-friendly policies from the new administration appears to be cooling.<\/p>\n
\u201cMuch of the good news is already priced into Bitcoin,\u201d said Jochen Stanzl, Chief Market Analyst at CMC Markets. \u201cWithout concrete political steps from the Trump administration, we may see a broader correction in this and other Trump-related trades.\u201d<\/p>\n
Outlook<\/p>\n
As markets navigate shifting monetary policy expectations and political developments, investors are bracing for further volatility. Upcoming economic data and Fed commentary will play a critical role in shaping sentiment in the coming weeks.<\/p>\n
Source : Swifteradio.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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