Stocks Decline on Fed Rate Outlook, Pound Drops: Markets Wrap
Published On Jan 13, 2025, 1:51 AM
Asian and US stocks are declining as traders reassess expectations for interest rate cuts by the Federal Reserve following strong payroll data released last Friday. The MSCI Asia Pacific Index has dropped for four consecutive days, while oil prices are on the rise due to increased sanctions on Russia, affecting supply. Additionally, the British Pound has slumped, reaching its lowest since November, as economic concerns mount in the UK, contributing to a weaker currency. Investors are now cautious, awaiting key inflation data from the US this week.
Stock Forecasts
SPY
Negative
With the Fed signaling less likelihood of rate cuts, and potential hikes looming, market sentiment is turning negative. Additionally, ongoing uncertainties regarding international trade and economic conditions suggest further declines for equities, particularly in affected regions.
XLE
Positive
Oil prices climbing due to sanctions on Russia indicate a bullish trend for energy stocks in the short term, as supply constraints may lead to higher prices, benefiting companies within the sector.
UUP
Positive
The British Pound's decline amid economic challenges presents a potential investment opportunity in US dollar-denominated assets or ETFs, as the dollar strengthens against other currencies. The trend could impact exports negatively in the UK but may benefit US exporters.
Related News
Don’t count on human resources to take your side in a workplace issue, especially if it involves a conflict with your boss.
Two key inflation prints await investors as rate fears rattle markets: What to know this week
Jan 12, 2025, 7:51 AM
After a hot December jobs report pared back investor's hopes for interest rate cuts in 2025, two key inflation readings will add to the discussion in the week ahead.
This week in Bidenomics: Thanks for nothing, man
Jan 11, 2025, 10:00 AM
Biden is leaving Trump a robust job market — but other cracks may be forming.