From Yahoo Finance: 2025-06-12 06:00:00

President Trump’s Truth Social posts no longer impact markets like they used to. A recent post about a China deal barely budged futures, with stocks now reacting more to economic data. A cooler-than-expected reading of consumer prices for May suggests potential interest rate cuts by the Federal Reserve.

Markets have shifted focus from trade war updates to the Federal Reserve and US economic trajectory. Tariffs are still in place, though the effective rate has fallen from 25% to around 15%. Wall Street isn’t banking on tariff reductions but on the resilience of the US economy through the tariffs.

Recession fears have eased as data shows a cooling labor market and easing inflation pressures. The biggest market question now revolves around the central bank’s policy decisions. Solid economic data may reduce the need for drastic rate cuts, giving the Federal Reserve more leeway to adjust based on good reasons like cooling inflation.

Bank of America economist Stephen Juneau notes a lower risk of “bad” cuts and an increased probability of “good” cuts following solid CPI data and a strong May jobs report. The market awaits Federal Reserve Chair Jerome Powell’s remarks on June 18 after the central bank’s next policy decision. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average falling over 500 points. This drop was attributed to concerns over rising inflation rates and uncertainty surrounding the Federal Reserve’s next move.

2. In international news, tensions between Russia and Ukraine continue to escalate as Russian troops amass near the Ukrainian border. The United States and other Western nations have expressed concern over the potential for conflict in the region.

3. On the economic front, the latest job report showed a decrease in unemployment rates, with the addition of 400,000 new jobs in the month of March. This positive news has provided a boost to consumer confidence and overall market sentiment.

4. In technology news, Apple announced the release of its latest iPhone model, boasting improved camera capabilities and a faster processor. The tech giant also unveiled new features for its popular Apple Watch, including enhanced health tracking and fitness monitoring tools.

Read more: The stock market is shifting its focus to the Fed from Trump: Morning Brief