Trump hints at Fed Chair replacement, dollar falls, stocks rise, rate cuts expected.

From Yahoo Finance: 2025-06-26 17:07:00

The dollar fell as stocks rose after Trump hinted at a possible Fed Chair replacement, fueling expectations of rate cuts. Market moves include world stocks hitting records, a weak dollar, and soaring platinum prices.

Trump’s pressure on the Fed to cut rates has intensified, with talks of naming a replacement for Powell early. The dollar hits a 3-year low, marking its worst first half in over 50 years.

Market sentiment remains bullish, fueled by optimistic growth forecasts and record-high stocks. Potential “pain trades” loom as investors brace for global trade uncertainties and crowded positions.

Popular trades like long gold, tech stocks, and short dollar face vulnerability due to crowded positions. A dovish Fed outlook and anticipation of rate cuts drive market sentiment and performance.

Speculation around substantial Fed rate cuts drives popular trades like gold and tech stocks. However, a rapid economic slowdown could expose over-extended positions, leading to potential market dislocation.

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