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The U.S. applies deadline pressure as economic data cools.
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IntroductionU.S. Stocks Volatile, Federal Reserve Signals Cautious Approach to Rate CutsDuring Tuesday night ...
U.S. Stocks Volatile,Is Forex International a formal platform? Federal Reserve Signals Cautious Approach to Rate Cuts
During Tuesday night's U.S. stock trading session, a statement from the Federal Reserve boosted market sentiment. As of the press time, the Nasdaq rose 0.71%, the Dow Jones rose 0.31%, and the S&P 500 rose 0.44%. However, while the Federal Reserve spoke, spot gold fell nearly 1%, dropping below $3350; WTI crude oil futures rose over 1.7%, and Brent crude oil futures also rose more than 1.6%.
Federal Reserve official Bostic made it clear that although inflation has eased, it is not yet enough to support a rate cut, and core price pressures still exist. He emphasized that the Federal Reserve will be "very cautious" about whether to cut rates and pointed out that there is time to observe the development of various uncertainties given the current healthy economic backdrop. He also added that there might be only one rate cut this year, and it will require economic data alignment to implement.
Weak Factory Orders Indicate Increased Signs of Economic Slowdown
The latest U.S. factory orders data for April showed a significant downturn. Overall, it decreased by 3.7% month-on-month, far exceeding the expected 3.1% decline, and the previous value was revised down from a 4.3% increase to a 3.4% increase. Orders excluding defense and transportation also fell, reflecting widespread weakness in manufacturing. Durable goods orders final value declined by 6.3%, in stark contrast to March's surge of 9.2%.
These data confirm that the U.S. economy is facing challenges in demand, although the overall job market remains healthy, Bostic also acknowledged that there are already some signs of weakening.
Trump Administration Sets Deadline for Countries to Submit Trade Proposals
Another major news story comes from the Trump administration. According to Reuters, with only five weeks left before the "reciprocal tariffs" policy resumes, the U.S. government has issued an urgent notice to multiple countries, requiring them to submit their best trade negotiation proposals by this Wednesday, including reducing tariffs and increasing import quotas for U.S. agricultural and industrial products.
Although the White House has repeatedly stated that "multiple agreements are about to be reached," so far, only a preliminary framework agreement has been reached with the UK, with other negotiations progressing slowly. This move reveals the Trump administration's strong sense of urgency to reach new trade agreements while adding another layer of uncertainty to the global trade landscape.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
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