Global Markets Watch: Fed Signals and Economic Indicators
MSCI's global equities index saw minor fluctuations, edging lower on Tuesday, while U.S. Treasury yields rose after Federal Reserve Chair Jerome Powell hinted at rate cuts without specifying a timeline. Key Wall Street indices managed modest gains, continuing their streak of record highs but closed lower than session peaks.
Powell expressed confidence that inflation would return to the Fed's target, emphasizing risks to the job market and economy if interest rates remain elevated too long. Despite no clear signal on rate cut timing, analysts suggest Powell is preparing for potential cuts based on further economic data.
Traders are betting on a 70% chance of a rate cut by September. Wall Street showed mixed results with the Dow down by 0.13%, S&P 500 slightly up by 0.07%, and Nasdaq up by 0.14%. Key global and European indices also saw declines, reflecting ongoing market caution.
(Disclaimer: With inputs from agencies.)