The Market Brief
Hey team. U.S. stock index futures declined in early trading following a robust U.S. jobs report, raising investor doubts about the likelihood of interest rate cuts this year, as the earnings season approaches.
Let’s see what’s ahead for the market!
Impact Snapshot
Stocks tumble as traders cast doubt on 2025 rate cut
Chip Stocks Decline Amid Stricter U.S. Controls on AI Chip Exports
Macro Viewpoint
Global stock markets extended their losses in early trading, weighed down by reduced expectations for Federal Reserve interest rate cuts and another surge in oil prices, which raises fresh concerns about inflation.
After a turbulent start to 2025, world markets faced another setback on Friday following a strong US jobs report. The data prompted traders to sharply lower their expectations for Fed rate cuts, now predicting less than 30 basis points for the entirety of 2025.
With equity valuations significantly above historical averages, attention will shift later this week to quarterly earnings reports from companies.
Key economic indicators, including the Consumer Price Index and the Federal Reserve's Beige Book on economic activity, both set to be released on Wednesday, will provide investors with greater clarity on the central bank's policy direction.
