PiCK
Trump's Tariff Remarks May Increase Wall Street Investors' Anxiety [New York Stock Market Weekly Outlook]
Summary
- This week's New York stock market will see FOMC meeting results having a significant impact on investors, the report stated.
- Economic indicators such as retail sales data will influence investor sentiment, and recent inflation indicators have somewhat alleviated market anxiety, it was revealed.
- Trump's tariff policy, as well as major companies' earnings announcements, may also act as variables in the investment market during the week.
Retail sales on 17th, FOMC scheduled for 18-19th
Trump's tariff uncertainty also a variable
The biggest event for the New York stock market this week (17-21) is the Federal Open Market Committee regular meeting (FOMC) held over two days on the 18-19th. According to the CME FedWatch, Wall Street currently expects with over 90% probability that the Fed will keep the current benchmark interest rate at 4.25-4.50% per annum.
Investors are closely watching the 'dot plot' containing FOMC members' interest rate forecasts. Last December's dot plot reduced the number of rate cuts this year from the previous 4 to 2. Recently, US inflation has been reluctant to come down to the Fed's target of 2%. However, the US February Consumer Price Index (CPI) was recorded at 2.8% higher than the same period last year, falling below market expectations of 2.9%, somewhat alleviating market anxiety.
February retail sales, to be announced on the first trading day of this week, the 17th, is also a key indicator that the Fed references. It's an indicator that gives insight into consumer spending, which supports two-thirds of the US economy. Retail sales in January plunged 0.9% compared to the previous month.
Attention is focused on whether US President Donald Trump will continue his remarks on tariffs this week. As of the 13th, the market capitalization of companies in the S&P 500 had evaporated by about $5.3 trillion compared to the February 19 peak. This is due to the uncertainty of the Trump administration's tariff policy. It will be interesting to see how various economic indicators and the Fed's monetary policy will affect the still subdued investment sentiment.
Investors are also on high alert for remarks from NVIDIA CEO Jensen Huang. Huang will attend 'GTC 2025' in Silicon Valley, USA from 17-21, and on the second day of the event, the 18th, he will deliver a keynote speech focusing on artificial intelligence (AI) and accelerated computing technologies that are changing the world.
On the 19th, CEO Huang will hold a press conference for journalists from around the world, and on the 20th, he plans to discuss future quantum computing technology trends. FedEx, Micron Technology, Nike, and others will announce their earnings on the 20th of this month. New York=Park Shin-young Special Correspondent nyusos@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
