Investors who are on hold for speech by Fed Powell because strong data increase stocks worldwide

Business news

May 6, 2025

S&P 500 Friday closed by 1.47%but S&P Futures In New York, they decreased by 0.77%. Revenue and macro data are greatly intensified than expected for Q1, but investors are likely to put everything on the interest rate on Wednesday. While the Fed does not intend to change the rates, the comment of the Fed Chairman Jerome Powell is likely to move markets worldwide.

Stock markets in Asia and Europe have largely passed this morning after nine direct S&P 500 trading activities in US S&P futures, decreased by 0.78% today, suggesting that some investors may want to sell their recent profits today.

The last profit has become strong: “With 69% of the S&P 500 companies it is reported that 70% win profits from 1 quarter … and 54% win income,” “” Jpmorgan chase Dubrava Lakos-Bujas analyst told customers in a recent note.

Overall, investors hold their breath on the interest rate on Wednesday from the US Federal Reserve. President Trump loudly claims that Fed Chairman Jerome Powell should reduce the rate, but smoke signals from the Eclasse building believe that the Central Bank will hold the betting rates. As always, it will be his comment and recommendations that will move the markets this day.

Here’s a picture of today’s action:

30-day Fed Future Fed The market has given more than 98% of the Fed content at 4.25% to 4.50%.
S&P 500 Friday closed by 1.47%but S&P Futures In New York, they decreased by 0.77%. (S&P stays down 3.31% y.)
All the basic Asian markets were this morning except China where CSI 300 slipped 0.12%.
A Stoxx Europe 600 was slightly in the early trading.
UK FTSE 100 was closed to watch the Day of Labor Day.
Tippin Release your profits after the bell today.

Although the Fed is expected not to move interest rates –Fedwatch dashboard “Keep” 98%-Powell face the unenviable puzzle: recent income and macro data has become strong. In conjunction with President Trump’s tariff regime, which suggests that inflation may move up, which will require the Fed to increase tariffs. However, these moods and polls from the private sector remain gloomy – and the tariffs themselves have not yet got into the real world. This suggests that the economic slowing that will require the Fed to reduce the rates.

In any case, there is no clear direction, the Fed probably contains. The latest public statement by a member of the Federal Open Market Committee came from Beth M. Hammak, the President of the Cleveland, who emphasized these sentiments. “I think we need to be patient. We want to make sure we are moving in the right direction rather than quickly moving in the wrong direction,” she said, according to Goldman Sachs Research Wealth.

Goldman’s chief economist, Jan Hatus, believes that the Fed may be a few bias to cuts rather than exit. “While the FOMC appears to set a higher rate for reducing the rate than during the 2019 trade war, we do not believe that high inflation will reduce it when the unemployment rate begins to intensify when the tariff shock gets into the economy,” he told investors in a recent note.

“The main problem of the Fed is inflation.Mr. bin It seems to be a threat to national security, “UBS analyst Paul donan said this morning.

Originally this story was presented on Fortune.com