Yesterday, the market bulls prevailed, pushing the U.S. leading tech benchmark (NAS100) up to a record close as a ceasefire in the Middle East has reignited the risk appetite, driving investors back to equities.
Although the ceasefire may be fragile, market participants are treating the latest statements as indication of easing tensions, prompting a return of buying interest.
On the policy side…
Jerome Powell has said that the rate cuts can wait until the effects of tariffs are better understood, stating, “We are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance”.
Other Fed members have also justified the need for a wait-and-see approach regarding the future interest rate policy.
The markets will pay attention to:
· The second day of the Semiannual Monetary Policy Report to Congress with Jerome Powell expected to take the stage today (June 25) at 2 p.m. UTC
· May Durable Goods Orders (June 26 at 12:30 p.m. UTC)
· The week ending June 21 Initial Jobless Claims reading due tomorrow (June 26 at 12:30 p.m. UTC)
