NFP; rates; Bank stress tests could determine next market move – Versace
This US jobs reading could keep the Wall Street melt-up going. If it’s not a ‘hot’ number, then it could give the Fed room to cut rates, says Tematica CIO, Chris Versace.
Plus, why bank stress tests indicate risks cracks could be emerging.
(AI Video Summary)
High data week anticipated
This week is pivotal for forex traders with multiple significant events on the agenda, including elections in France and the UK, non-farm payrolls (NFPs), and Federal Open Market Committee (FOMC) minutes. Chris Versace discusses the anticipated high data week which includes ISM and S&P data, jobs, and wage reports, focused on understanding the economy's trajectory and inflation indicators. He suggests these metrics will influence Ferderal Reserve (Fed) rate cut expectations, currently anticipated to perhaps happen once or twice later this year.
NASDAQ outlook
Meanwhile, NASDAQ shows lagging internal strength despite dominant AI and big tech sectors driving its recent outperformance. The financial sector responded positively to successful stress test results, with banks like Morgan Stanley announcing dividend increases and buybacks.
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