Media tries to downplay Trump's economy as S&P 500 hits record high
'They just can't help themselves; even the good news is presented in some sort of a negative light,' Ms Panahi said.
'The reality is that, despite what the experts told us about these tariffs being enormously inflationary, about them crashing the share market, crashing the economy, that has not been the experience thus far,' Ms Panahi said.
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The Advertiser
an hour ago
- The Advertiser
Wall Street slips amid Federal Reserve caution
The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows. The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
Perth Now
2 hours ago
- Perth Now
Wall Street slips amid Federal Reserve caution
Money markets are pricing in a 21.2 per cent likelihood for a July rate cut by the Federal Reserve. (AP PHOTO) Money markets are pricing in a 21.2 per cent likelihood for a July rate cut by the Federal Reserve. (AP PHOTO) Credit: AAP The S&P 500 and Nasdaq indexes have inched down as Federal Reserve chair Jerome Powell stayed cautious on interest-rate cuts and investors watched a Senate voting marathon on US President Donald Trump's tax-cut and spending bill. The blue-chip Dow gained and was just about 746 points away from its all-time high touched in December. The day's moves for the S&P 500 and the Nasdaq Composite come after the indexes posted record closing highs on Monday, capping their best quarter in over a year as hopes for more trade deals and possible rate cuts supported sentiment. Powell reiterated the US central bank plans to "wait and learn more" about the effects of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts. The top policymaker has been facing harsh criticism from Trump to ease monetary policy, with the administration mapping out the likely plan for naming Powell's replacement for when he leaves the job next May. The fate of Trump's "One Big Beautiful Bill" was also in focus as US senators were still voting on Tuesday on a potentially long list of amendments to the legislation that is expected to add $US3.3 trillion ($A5 trillion) to the country's debt pile. The Republican majority's struggle to pass the bill exemplifies deep divisions within the party over debt. The bill aims to partly cover the cost of the tax reductions with cuts to Medicaid and some food assistance programs for low-income people. Trump said he was open to moving the July 4 deadline he gave fellow Republicans in the Senate to get behind the bill, while Treasury Secretary Scott Bessent said he expects the Senate to pass the bill by the afternoon. "This version that we hear about is not necessarily the one that's going to pass. So you know that's still something that weighs on investors' minds," said Kim Forrest, chief investment officer at Bokeh Capital Partners. Tesla's shares fell 4.5 per cent after a fresh spat between CEO Elon Musk and Trump over the tax bill, with the president urging the government efficiency department to review the subsidies that Musk's companies have received. Tesla also reported a sales drop for a sixth straight month in Sweden and Denmark in June but they rose in Norway and Spain during the same month. In early trading on Monday, the Dow Jones Industrial Average rose 189.54 points, or 0.43 per cent, to 44,284.31, the S&P 500 lost 2.54 points, or 0.04 per cent, to 6,202.41 and the Nasdaq Composite lost 32.26 points, or 0.16 per cent, to 20,336.87. The S&P 500 and the Nasdaq's rise to record highs marked a stunning recovery in sentiment that was hammered by Trump's chaotic trade policies and geopolitical tensions, with investors betting on AI enthusiasm and earnings momentum to keep the bull run going. Data showed US job openings increased unexpectedly in May, suggesting labour market resilience despite trade and economic uncertainties. Market focus now shifts to Thursday's non-farm payrolls report, which could recaliberate bets for a rate cut as soon as July. Money markets are pricing in a 21.2 per cent likelihood for a July rate cut and see about 64.5 bps worth of cuts by the end of this year, per LSEG data. AMC Entertainment Holdings dropped 6.5 per cent after the theatre chain operator said it would cut its debt by converting at least $US143 million in exchangeable bonds into shares. Shares of US-based casino operators rose after Macau reported a rise in June gambling revenue. Wynn Resorts gained 7.8 per cent, Las Vegas Sands was up 6.5 per cent and MGM Resorts International added 4.5 per cent. Advancing issues outnumbered decliners by a 1.28-to-1 ratio on the NYSE, and by a 1.05-to-1 ratio on the Nasdaq. The S&P 500 posted 14 new 52-week highs and no new lows while the Nasdaq Composite recorded 46 new highs and 42 new lows.
The Australian
2 hours ago
- The Australian
Currency war looms if Trump moves to replace Federal Reserve chair early
US President Donald Trump's reported plan to name Federal Reserve chair Jerome Powell's successor months ahead of schedule threatens to unleash fresh volatility across financial markets. According to The Wall Street Journal, Mr Trump is considering naming Mr Powell's replacement as early as September – eight months before his term expires in May 2026. Concern about such an unprecedented move to undermine Mr Powell's authority and pressure the Fed into deeper rate cuts saw the US dollar index fall 0.4 per cent to fresh three-year lows on Thursday. A corresponding rise in the Australian dollar to US65.36c left the local currency near its highest point since November. US bond yields fell about 2 basis points amid speculation the Fed may restart interest rate cuts next month. US stock index futures turned up slightly. The S&P 500 has bounced 26 per cent from its April low as concerns about US trade policy and Middle East risks receded. However, any move to undermine Fed independence could rekindle the 'Sell America' theme that emerged when Mr Trump ramped up tariffs in April. Bank of America's fund manager survey this month showed investors were already heavily positioned against US assets. Perhaps this will mute the short-term impact of the WSJ report. And of course, rapid-fire US interest rate cuts could provide short-term support to stock valuations. The US President has called for 2 to 3 percentage points of additional cuts. But politically motivated interest rate cuts could undermine investors' confidence in the Federal Reserve's inflation-fighting credibility. IG market analyst Tony Sycamore warns that Mr Trump's pick will inevitably sit 'at the highly dovish end of the spectrum' and support aggressive rate cuts that could fundamentally undermine Fed independence. Such an erosion of institutional credibility poses risks for the global monetary system, potentially triggering competitive devaluations as other central banks respond to US policy accommodation. For Australian markets, Mr Trump's gambit represents a potentially destabilising force that could reshape currency dynamics, bond yields and equity valuations. The most immediate impact will likely hit currency markets. While a stronger Australian dollar might initially benefit consumers and import-dependent businesses, the implications are complex. A persistently weak US dollar could complicate the Reserve Bank's policy considerations, particularly as local inflation pressures ease. Rapid Australian dollar appreciation would effectively tighten monetary conditions through the exchange rate channel, potentially forcing the RBA to cut rates more aggressively than domestic conditions alone would warrant. A weaker US dollar typically supports commodity prices, benefiting Australia's resource-heavy economy. However, political uncertainty surrounding Fed policy could increase market volatility, making Australian commodity exports vulnerable to sudden shifts in global risk sentiment. Australian government bond markets face particularly complex dynamics. While falling US Treasury yields might initially support local bonds through global yield curve effects, an underlying erosion of central bank credibility could prove more damaging. If markets seriously questioned the Federal Reserve's commitment to price stability – as during the 'great inflation' of the 1970s – long-term inflation expectations could become unanchored, with devastating implications for economic growth. Bond vigilantes could demand higher risk premiums across developed markets as compensation for increased policy uncertainty. The timing is awkward for Australian bond markets, which have rallied on expectations of domestic rate cuts following softer inflation data. CBA, Westpac, AMP, RBC, Deutsche, HSBC and Morgan Stanley economists now expect the RBA to cut again in July. But a sudden shift in global monetary policy dynamics could leave local investors caught between improving domestic fundamentals and deteriorating global policy credibility. Australian equity markets face similarly complex prospects. Aggressive US rate cuts might initially support risk assets through global liquidity channels, but political interference could ultimately prove counter-productive for market confidence. The resources sector, comprising about 20 per cent of the ASX, could benefit from both a weaker US dollar and commodity price support. However, this support could prove fleeting if political pressure on the Fed triggers broader concerns about institutional stability. Financial sector stocks face particular challenges, with Australian banks already confronting squeezed net interest margins from domestic rate cuts. Further complications from US monetary policy interference could extend this weakness. Perhaps most concerning is the broader regional context. If Fed independence becomes compromised, it could encourage similar political interference elsewhere, potentially destabilising the entire framework of independent central banking that has underpinned global financial stability for decades. The Bank of Japan has already begun reversing ultra-accommodative policy, and additional pressure on global monetary policy co-ordination could complicate these efforts. For Australia, which maintains significant trade and financial linkages with both the US and Asian economies, such policy fragmentation could prove particularly disruptive. At this stage, it's unclear whether Mr Trump's Fed gambit represents temporary political theatre or the beginning of a fundamental shift towards politically influenced monetary policy globally. The full implications for Australian markets will depend on how aggressively Mr Trump pursues his plan and whether other major central banks feel compelled to respond. Australian markets may benefit from global liquidity effects of anticipated US rate cuts. But longer-term risks to institutional credibility could prove far more damaging, particularly if Mr Trump's approach spreads to other jurisdictions. At a minimum, investors should prepare for increased volatility across all asset classes as markets grapple with politically compromised monetary policy in the world's largest economy. David Rogers Markets Editor David Rogers began writing about financial markets in 1987. He has worked for Standard & Poor's, Thomson Financial, BridgeNews, Tolhurst Noall, Dow Jones Newswires and The Wall Street Journal. David has extensive real-time reporting experience in economics, foreign exchange, equities, commodities and bonds. Companies HMC Capital's shares have been dumped by investors after it revealed its plans to raise $2bn for an energy transition fund had faltered. Companies The sought-after Boral boss is stepping down after just over three years, as he reveals his next plans.
