Fed

Investors continued offloading US assets as the Trump administration seeks a way to dismiss Federal Reserve Chair Jerome Powell. Trump has demanded rate cuts, referring to Powell as “a major loser” in a social media post. The US dollar weakened to a three-year low.

The week’s focus will be on any tariff updates from the Trump administration and retaliatory measures from other economies. Additionally, US and Chinese inflation veri, as well as the Reserve Bank of New Zealand’s rate decision, will be in the spotlight for financial markets.

Major central banks are set to decide on interest rates this week, providing guidance on market trajectory. Investors will particularly focus on the Federal Reserve’s policy outlook, as the bank may step in and buoy a wobbly Wall Street after it fell into correction territory.

US stocks rallied as February’s inflation veri came in lower than expected, boosting hopes for Federal Reserve rate cuts later this year. The S&P 500 gained 0.7%, while the Nasdaq 100 jumped 1.5%. Meanwhile, the euro held at a four-month high.

Küresel stock markets rebounded from the previous day’s selloff, ahead of major tech earnings and central bank rate decisions.