Will the 'Fed Put' Emerge on the New York Stock Exchange... Eyes on Powell's Remarks

From the 5th to the 9th, the New York Stock Exchange in the United States is expected to fluctuate depending on the progress of tariff negotiations by the Donald Trump administration and the remarks of Jerome Powell, Chairman of the U.S. Federal Reserve (Fed).

The biggest event that the market is focusing on is the regular meeting of the Federal Open Market Committee (FOMC) held on the 7th (local time). According to the Chicago Mercantile Exchange (CME) FedWatch, the futures market reflects a 97.2% probability of a rate freeze at this meeting as of the 3rd, indicating a high possibility of the base rate being frozen. However, market participants are paying attention to what stance Chairman Powell will take at the press conference regarding the impact of tariffs, the timing of rate cuts, U.S. economic growth forecasts, and financial market volatility. The key is whether he will hint at a 'Fed Put' (defending the stock market with a rate cut) due to serious recognition of tariff effects or place more weight on inflation concerns.

President Trump's diplomatic schedule is also a variable. On the 6th, a day before the FOMC, President Trump will hold a summit with Canadian Prime Minister Mark Carney. If President Trump shows a more relaxed stance than before, it could provide relief to the stock market, but market anxiety remains.

Other noteworthy economic indicators include the U.S. Institute for Supply Management (ISM) services Purchasing Managers' Index (PMI) for April, released on the 5th, and the U.S. trade balance for March, expected to show a deficit of $129 billion, released on the 6th. Major companies will also announce their earnings. On the 5th, Palantir Technologies and Ford will release their results, followed by AMD on the 6th, Walt Disney on the 7th, and Microchip Technology on the 8th.

Reporter Da-yeon Lim allopen@hankyung.com