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Time of India
a day ago
- Business
- Time of India
S&P 500 and Nasdaq notch record high closes, lifted by Alphabet
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The S&P 500 and the Nasdaq notched record high closes on Monday, lifted by Alphabet and other megacaps ahead of several earnings reports this week, while investors bet on potential trade deals to blunt economic damage from the Trump administration's global tariffs. Google-parent Alphabet rallied 2.7% ahead of its quarterly report on Wednesday. It and Tesla, also reporting on Wednesday, kick off earnings from the so-called "Magnificent Seven", and their results may set the tone for other heavyweight companies reporting in the next several dipped 0.35%, while Apple gained 0.62% and Amazon rose 1.43%, both lifting the S&P 500 and rallied over 4% after the telecommunications company boosted its annual profit on average expected S&P 500 companies to report a 6.7% increase in earnings for the second quarter, with Big Tech driving much of that gain, according to LSEG I/B/E/S."So far, companies that have reported have, in general, met or beat guidance from the prior quarter, and we haven't seen any degradation either in corporate profits or consumer spending," said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in U.S. President Donald Trump's August 1 tariff deadline approaching, the S&P 500 is up about 8% year to date, with investors betting the economic damage from tariffs will be less than feared.U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the European Union, even as EU members explored possible countermeasures against the United has threatened 30% tariffs on imports from Mexico and the EU, and sent letters to other trading partners, including Canada, Japan and Brazil, setting tariffs ranging from 20% to 50%.The S&P 500 climbed 0.14% to end the session at 6,305.60 Nasdaq gained 0.38% to 20,974.18 points, while the Dow Jones Industrial Average declined 0.04% to 44,323.07 of the 11 S&P 500 sector indexes rose, led by communication services, up 1.9%, followed by a 0.6% gain in consumer on U.S. exchanges was relatively heavy, with 19.7 billion shares traded, compared to an average of 17.7 billion shares over the previous 20 S&P 500 has gained about 7% in 2025, while the Nasdaq has climbed almost 9%.Investors focused on how tariff uncertainty is impacting the U.S. economy will scrutinize jobless claims data and the July business activity report, expected on will also watch a speech by Federal Reserve Chair Jerome Powell on Tuesday for clues about when the Fed might cut interest rates, especially after mixed inflation signals last have largely ruled out a July rate cut, and they now see a greater than 50% chance the Fed will cut by its September meeting, according to CME Group's FedWatch stocks outnumbered rising ones within the S&P 500 by a 1.7-to-one S&P 500 posted 17 new highs and 9 new lows; the Nasdaq recorded 97 new highs and 56 new lows.
Business Recorder
2 days ago
- Business
- Business Recorder
Indian rupee to track dollar recovery, bond market focused on rate cut bets
MUMBAI: The Indian rupee will likely take cues from how far the dollar's nascent recovery extends this week, while bonds will move based on expectations of interest rate cuts by the local central bank. The rupee closed at 86.1475 on Friday, down 0.4% on the week. It is expected to hover between 85.80 and 86.70 in the near-term with a slight weakening bias, according to traders. After falling for five straight months, the dollar index is up 1.5% in July so far, as strong U.S. economic data and indications that tariffs have started pushing up prices lowered rate-cut expectations in the world's largest economy. Remarks from Federal Reserve Chair Jerome Powell on Tuesday will be in focus, in light of the persistent criticism he has faced from U.S. President Donald Trump for not lowering interest rates. The odds of a U.S. rate cut in September are around 53%, per CME's FedWatch tool. India's ongoing trade negotiations with the U.S. will also be in focus alongside quarterly earnings reports from local companies, which have a bearing on foreign portfolio flows into equities. Forex advisory firm IFA Global recommended that importers cover near-term liabilities around 86, while suggesting exporters hedge around 86.25. Meanwhile, India's 10-year benchmark 6.33% 2035 bond yield , which settled last week at 6.3058%, is expected to move in a range of 6.28% to 6.33%. The yield could rise as New Delhi sells 300 billion rupees ($3.5 billion) of the benchmark on Friday. Focus will be on the potential for rate cuts after India's retail inflation slipped to a more than six-year low in June. An expected further drop to a record low in July is prompting calls for another rate cut. 'With recent high frequency data disappointing and indicating the possibility of growth in India slowing down further…it makes sense to be involved in local currency bonds also on the potential for more support from the RBI further down the line,' said Giulia Pellegrini, lead portfolio manager emerging market debt at AllianzGI. Market participants would also track whether the Reserve Bank of India turns more aggressive in withdrawing liquidity after drawing out 2 trillion rupees from the banking system on Friday.
Economic Times
2 days ago
- Business
- Economic Times
Rupee to track dollar recovery, bond market focused on rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee will likely take cues from how far the dollar's nascent recovery extends this week, while bonds will move based on expectations of interest rate cuts by the local central rupee closed at 86.1475 on Friday, down 0.4% on the week. It is expected to hover between 85.80 and 86.70 in the near-term with a slight weakening bias, according to falling for five straight months, the dollar index is up 1.5% in July so far, as strong U.S. economic data and indications that tariffs have started pushing up prices lowered rate-cut expectations in the world's largest from Federal Reserve Chair Jerome Powell on Tuesday will be in focus, in light of the persistent criticism he has faced from U.S. President Donald Trump for not lowering interest odds of a U.S. rate cut in September are around 53%, per CME's FedWatch ongoing trade negotiations with the U.S. will also be in focus alongside quarterly earnings reports from local companies, which have a bearing on foreign portfolio flows into equities. Forex advisory firm IFA Global recommended that importers cover near-term liabilities around 86, while suggesting exporters hedge around India's 10-year benchmark 6.33% 2035 bond yield, which settled last week at 6.3058%, is expected to move in a range of 6.28% to 6.33%. The yield could rise as New Delhi sells 300 billion rupees ($3.5 billion) of the benchmark on will be on the potential for rate cuts after India's retail inflation slipped to a more than six-year low in June. An expected further drop to a record low in July is prompting calls for another rate cut."With recent high frequency data disappointing and indicating the possibility of growth in India slowing down makes sense to be involved in local currency bonds also on the potential for more support from the RBI further down the line," said Giulia Pellegrini, lead portfolio manager emerging market debt at participants would also track whether the Reserve Bank of India turns more aggressive in withdrawing liquidity after drawing out 2 trillion rupees from the banking system on EVENTS: ** India July HSBC manufacturing, services and composite Flash PMI - July 24, Thursday (10:30 a.m. IST) U.S. ** June existing home sales - July 23, Wednesday (7:30 p.m. IST) ** Initial weekly jobless claims for week to July 14 - July 24, Thursday (6:00 p.m. IST)** July S&P Global manufacturing, services and composite Flash PMI - July 24, Thursday (7:15 p.m. IST)** June new home sales units - June 25, Wednesday (7:30 p.m. IST)** June durable goods - June 26, Thursday (7:30 p.m. IST)($1 = 86.1180 Indian rupees)
Time of India
2 days ago
- Business
- Time of India
Rupee to track dollar recovery, bond market focused on rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The Indian rupee will likely take cues from how far the dollar's nascent recovery extends this week, while bonds will move based on expectations of interest rate cuts by the local central rupee closed at 86.1475 on Friday, down 0.4% on the week. It is expected to hover between 85.80 and 86.70 in the near-term with a slight weakening bias, according to falling for five straight months, the dollar index is up 1.5% in July so far, as strong U.S. economic data and indications that tariffs have started pushing up prices lowered rate-cut expectations in the world's largest from Federal Reserve Chair Jerome Powell on Tuesday will be in focus, in light of the persistent criticism he has faced from U.S. President Donald Trump for not lowering interest odds of a U.S. rate cut in September are around 53%, per CME's FedWatch ongoing trade negotiations with the U.S. will also be in focus alongside quarterly earnings reports from local companies, which have a bearing on foreign portfolio flows into equities. Forex advisory firm IFA Global recommended that importers cover near-term liabilities around 86, while suggesting exporters hedge around India's 10-year benchmark 6.33% 2035 bond yield, which settled last week at 6.3058%, is expected to move in a range of 6.28% to 6.33%. The yield could rise as New Delhi sells 300 billion rupees ($3.5 billion) of the benchmark on will be on the potential for rate cuts after India's retail inflation slipped to a more than six-year low in June. An expected further drop to a record low in July is prompting calls for another rate cut."With recent high frequency data disappointing and indicating the possibility of growth in India slowing down makes sense to be involved in local currency bonds also on the potential for more support from the RBI further down the line," said Giulia Pellegrini, lead portfolio manager emerging market debt at participants would also track whether the Reserve Bank of India turns more aggressive in withdrawing liquidity after drawing out 2 trillion rupees from the banking system on EVENTS: ** India July HSBC manufacturing, services and composite Flash PMI - July 24, Thursday (10:30 a.m. IST) U.S. ** June existing home sales - July 23, Wednesday (7:30 p.m. IST) ** Initial weekly jobless claims for week to July 14 - July 24, Thursday (6:00 p.m. IST)** July S&P Global manufacturing, services and composite Flash PMI - July 24, Thursday (7:15 p.m. IST)** June new home sales units - June 25, Wednesday (7:30 p.m. IST)** June durable goods - June 26, Thursday (7:30 p.m. IST)($1 = 86.1180 Indian rupees)
CNBC
4 days ago
- Business
- CNBC
What a Trump, Powell faceoff means for your money
Ahead of the next Federal Reserve meeting later this month, tensions between the White House and the central bank have reached a fever pitch. On Wednesday, a senior White House official told CNBC and other news outlets that President Donald Trump was likely to soon fire Fed Chair Jerome Powell. Trump later denied those reports, although he said he wouldn't "rule out anything." Trump has repeatedly said the central bank should have slashed its key benchmark by now. On Friday, Trump once again called Powell "too late" for not lowering interest rates already. "'Too Late,' and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house," Trump wrote in a Truth Social post. More from Personal Finance:Trump's 'big beautiful bill' slashes CFPB funding78% say Trump's tariffs will make it harder to deal with debtTax changes under Trump's 'big beautiful bill' — in one chart The president has argued that maintaining a federal funds rate that is too high makes it harder for businesses and consumers to borrow and puts the U.S. at an economic disadvantage to countries with lower rates. The Fed's benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on almost all of the borrowing and savings rates Americans see every day. Fixed mortgage rates, specifically, don't directly track the Fed, but are largely tied to Treasury yields and the U.S. economy. As concerns over tariffs and the broader economy drive Treasury yields higher, mortgage rates are following suit. Powell said July 1 that the Fed likely would have cut rates by now, but that it has held off due to the uncertainty and inflation risks posed by Trump's trade policies. As of the latest government reading, consumer prices edged higher in June as tariff-induced inflation started to pick up. Since December, the federal funds rate has been in a target range of between 4.25%-4.5%. Futures market pricing is implying almost no chance of an interest rate cut when the Fed meets at the end of July, according to the CME Group's FedWatch gauge. Even as the pressure to slash rates ramps up significantly, Powell has repeatedly said that politics will not play a role in the Fed's policy decisions. As it stands, market pricing indicates the Fed is unlikely to consider further interest rate cuts until at least September. Once the fed funds rate comes down, consumers could see their borrowing costs start to fall as well. "The fact that the Fed has been on the sidelines since December, leaving interest rates unchanged, is a reflection of the resilience of the economy and uncertainty about the path of inflation," said Greg McBride, chief financial analyst at Bankrate. "At the point where the Fed does eventually cut interest rates, we'd much rather that be due to easing inflation pressures than an economy that is rolling over," McBride said. For now, "inflation is still higher than desired," he added. The risk is that reducing rates too soon could halt or reverse progress on tamping down inflation, according to Mark Higgins, senior vice president at Index Fund Advisors and author of "Investing in U.S. Financial History: Understanding the Past to Forecast the Future." "Now you have a situation where Trump is willing to pressure the Fed to lower rates while they have less flexibility to do that," he recently told CNBC. "They have to keep rates higher for longer to extinguish inflation." The White House has said that tariffs will not cause runaway inflation, with the expectation that foreign producers would absorb much of the costs themselves. However, many economists expect that the full impact from tariffs on pricing could pick up in the second half of the year as surplus inventories draw down. For consumers waiting for borrowing costs to ease, they may be better off if the Fed sticks to its current monetary policy, according to Higgins. "There's this temptation to move fast and that is counterproductive," Higgins said. "If the Fed prematurely lowers rates, it's going to allow inflation to reignite and then they will have to raise rates again."
