The Market Brief
US equity futures retreated during early trading as some of the euphoria around expectations of Federal Reserve interest rate cuts eased, with concerns about tariffs and their impact on inflation.
Macro Viewpoint
Last week, markets waited with bated breath for Chair Powell’s Friday speech at Jackson Hole, and he delivered a dovish message with a focus on risks to the labor market.
In response, rates and USD declined while equities advanced with the S&P 500 closing just off its all-time high on Friday.
Traders see an 87% chance of a Fed rate cut next month after Powell signaled that the central bank may ease before inflation fully returns to target amid a softening hiring environment.
That optimism faces key tests this week, including a US inflation reading and Nvidia results.
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