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Yahoo
4 days ago
- Business
- Yahoo
Why many strategists think the market rally will continue
Despite concerns about tariffs and an economic slowdown, many Wall Street strategists think the market rally will continue. Yahoo Finance Senior Reporter Ines Ferré explains how the AI trade and hopes for a Fed rate cut in September could keep stocks climbing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. We're bringing in senior markets reporter, Ines Ferre with the Yahoo Finance Investor playbook. Ines. Yeah, Josh. And the strategists that we have spoken to said that, look, despite the tariffs, they still are optimistic about the rally that we have seen in equities in the longer term. And part of this is because the tariffs, we have a little bit more clarity about them now and the effective rate is expected to be anywhere between 15 and 18%. And what Wall Street is saying is, look, these this isn't enough to derail the equity market. This isn't enough to put us in a recession. Also, this week, we had some optimistic events happening like with some of the bellwethers of of the economy. I mean, you had Apple. I'm going to pull up a chart right now so you can take a look at the Dow. Apple up 12% over the last five days up 13% as it's been able to receive a carve out for the tariffs. You have some of the chip companies as well, that this has been optimistic for the market when it comes to the tariff front. And now Wall Street is saying that the markets are looking beyond the tariffs and really looking at the AI trade. If we take a look over at the Nasdaq for the last five days, you'll see some of these big names in video up 5% for the week. Google Alphabet up as well. So this has been fueling optimism about the AI trade. You had Palantir earnings that came in very strong this week. And on top of that, then you have the soft labor data that came out last week. Trump's nomination for the uh for the Federal Reserve board seat, that is that is fueling this optimism that the Fed will be cutting rates in September. And that is what the market is looking forward to. Definitely seems like that's been one of the key market drivers right now. And that's appreciate you joining us. Related Videos Barings' Burton on Tight Credit Spreads Patel and Catrambone's Outlook for the Fed How Apple's 'made-in-America' strategy led to big market gains CoreWeave rises ahead of earnings, Firefly sinks: Trending Tickers Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
05-08-2025
- Business
- Zawya
Trump scores major own goal with labor official firing: McGeever
(The opinions expressed here are those of the author, a columnist for Reuters.) ORLANDO, Florida - U.S. President Donald Trump's decision to fire a top labor official following weak jobs data obviously sends ominous signals about political interference in independent institutions, but it is also a major strategic own goal. Trump has spent six months attacking the Federal Reserve, and Chair Jerome Powell in particular, for not cutting interest rates. The barbs culminated in Trump branding Powell a "stubborn MORON" in a social media post on Friday before the July jobs report was released. The numbers, especially the net downward revision of 258,000 for May and June payrolls growth, were much weaker than expected. In fact, this was "the largest two-month revision since 1968 outside of NBER-defined recessions (assuming the economy is not in recession now)," according to Goldman Sachs. This release sparked a dramatic reaction in financial markets. Fed rate cut expectations soared, the two-year Treasury yield had its steepest fall in a year, and the dollar tumbled. A quarter-point rate cut next month and another by December were suddenly nailed-on certainties, according to rate futures market pricing. This was a huge U-turn from only 48 hours before when Powell's hawkish steer in his post-FOMC meeting press conference raised the prospect of no easing at all this year. Trump's constant lambasting of "Too Late" Powell suddenly appeared to have a bit more substance behind it. The Fed chair's rate cut caution centers on the labor market, which now appears nowhere near as "solid" as he thought. Trump could have responded by saying: "I was right, and Powell was wrong." Instead, on Friday afternoon he said he was firing the head of the Bureau of Labor Statistics, Commissioner Erika McEntarfer, for faking the jobs numbers. Trump provided no evidence of data manipulation. So rather than point out that markets were finally coming around to his way of thinking on the need for lower interest rates, Trump has united economists, analysts and investors in condemnation of what they say is brazen political interference typically associated with underdeveloped and unstable nations rather than the self-proclaimed 'leader of the free world'. "A dark day in, and for, the U.S.," economist Phil Suttle wrote on Friday. "This is the sort of thing only the worst populists do in the worst emerging economies and, to use the style of President Trump, IT NEVER ENDS WELL." UNCERTAINTY PREMIUM It's important to note that major – even historic – revisions to jobs growth figures are not necessarily indicative of underlying data collection flaws. As Ernie Tedeschi, director of economics at the Budget Lab at Yale, argued on X over the weekend: "BLS's first-release estimates of nonfarm payroll employment have gotten more, not less, accurate over time." It should also be noted that the BLS compiles inflation as well as employment data, so, moving forward, significant doubt could surround the credibility of the two most important economic indicators for the U.S. - and perhaps the world. Part of what constitutes "U.S. exceptionalism" is the assumption that the experts leading the country's independent institutions are exactly that, independent, meaning their actions and output can be trusted, whatever the results. Baseless accusations from the U.S. president that the BLS, the Fed and other agencies are making politically motivated decisions to undermine his administration only undermine trust in the U.S. itself. "If doubts are sustained, it will lead investors to demand more of a risk premium to own U.S. assets," says Rebecca Patterson, Senior Fellow at the Council on Foreign Relations. "While only one of many forces driving asset valuations, it will limit returns across markets." This furor comes as Fed Governor Adriana Kugler's resignation on Friday gives Trump the chance to put a third nominee on the seven-person Fed board, maybe a potential future chair to fill that slot as a holding place until Powell's term expires in May. Whoever that person is will likely be more of a policy dove than a hawk. Policy uncertainty, which had been gradually subsiding since the April 2 'Liberation Day' tariff turmoil, is now very much back on investors' radar. (The opinions expressed here are those of the author, a columnist for Reuters) (Editing by Mark Potter)
Yahoo
10-07-2025
- Business
- Yahoo
DOGE Hits Resistance on Bull Flag Breakout, But 'Cup and Handle' Points to Higher Moves
Dogecoin posted a powerful 6% surge during the July 9–10 trading session, blasting through resistance in an explosive rally before retreating into a sharp late-session reversal. Market sentiment improved after the U.S. extended its 'Liberation Day' tariff deadline by three weeks, buying time for trade negotiations and easing short-term pressure on risk assets. Meanwhile, expectations of a July Fed rate cut are climbing, with major banks pricing in 25–100bps in cuts over Q3 if inflation data underwhelms next week. These macro shifts gave crypto markets a tailwind, helping DOGE and other high-beta assets bounce sharply off key support levels. DOGE surged 6% from $0.170 to $0.186 between July 9 03:00 and July 10 02:00. Breakout occurred between 19:00–20:00 July 9, where price jumped $0.007 and volume spiked to 1.52B — nearly double the 24H average. Strong resistance emerged at $0.186 as price was repeatedly rejected on heavy volume. Support held around $0.180–$0.181 going into session close. In the final hour (02:28–03:27), DOGE fell 0.55% from $0.181 to $0.180, forming a sharp reversal pattern with rising downside momentum. Range: $0.016 or 9.23% between $0.170 low and $0.186 high. Resistance: $0.186 peak, with repeated high-volume rejection during 21:00–23:00. Support: $0.180–$0.181 zone held into close, but fractured during final hour selloff. Breakdown: 02:28–03:27 session saw support levels at $0.1808, $0.1806, and $0.1803 break consecutively under heavy sell volume — signaling institutional distribution. Volume: 1.52B on breakout, 4.9M during final reversal, confirming both bull entry and bear exit. Can DOGE reclaim $0.186 and flip resistance into support? Watch for sustained volume above this level. If downside continues, $0.176 and $0.172 are next potential support levels from prior consolidation zones. RSI and OBV readings on lower timeframes suggest short-term exhaustion, but macro sentiment remains net bullish. July 9–10's range could form the 'handle' in a larger weekly cup-and-handle pattern — validation would require a breakout above $0.195 with high volume. DOGE appears to be coiling for a breakout. Several bullish technical patterns—including a multi-year cup‑and‑handle, higher‑low base, and triple bottom—align with a surge in institutional whale accumulation. A decisive move above the $0.175–$0.20 resistance zone, especially with spike in volume, could trigger a powerful rally toward $0.25 and beyond.(Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.)
