US economic outlook

S&P 500 Hits Record Highs as Fed Rate Cut Expectations Boost Big Tech and Market Sentiment

Another day, another record high for the S&P 500 on optimism that:

1. earnings grew around 13% last quarter and the profit outlook has been improving since the summer months, and
2. the Federal Reserve (Fed) is about to start a fresh policy-easing cycle to counter the weakening U.S. jobs market – provided that inflation remains under control.

Tug of War: USD Sinks Amid Weak NFP Data and Escalating Tariff Tensions

Given the current macro and geopolitical backdrop globally, the ECB yesterday were unwilling to provide much in the way of strong guidance but the description of the monetary stance being “more meaningfully less restrictive” helped to provide further modest support for yields with EUR/USD extending the significant gains already recorded this week.