From Investing.com: 2024-05-02 05:30:00

The recent trading session was marked by volatility after Powell announced plans to reduce bond purchases, moving from $60 billion to $25 billion starting on June 1st. This decision is aimed at slowing down the economy slightly to combat inflation and could pave the way for potential rate cuts later in the year. Despite this, current rates are expected to remain stable for the time being, but any signs of economic weakness could spark speculation about rate cuts. Market dynamics were influenced by declining US yields, a rally in US stocks that was short-lived, and the Dollar Index struggling to break above 106.51, indicating a possible correction ahead. The interplay between US monetary policy and ECB signals will be crucial in guiding market movements in the near future.



Read more at Investing.com: Market Volatility Spikes as Fed Confirms Restrictive Policy