Asia Stocks to Gain on Signal for Fewer Fed Hikes: Markets Wrap
Asian equities are rising after signals that the US Federal Reserve may not aggressively raise interest rates next year. This rebound follows a recovery in US equities from intraday lows and a signal from Warsh that there is no urgency regarding rates. While Japanese and South Korean equity-index futures advanced, the S&P 500 remained flat as strength in Magnificent 7 stocks offset losses from memory makers and bank earnings that missed Street expectations. Markets now shift focus toward upcoming US inflation data and bank earnings.
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- ✓ Asian stocks rose following signals that the Federal Reserve may not raise rates aggressively next year.
- ✓ Equity-index futures for South Korea and Japan advanced.
- ✓ The S&P 500 closed little changed as Magnificent 7 strength offset losses in memory stocks and banks.
- ✓ Bank earnings missed Street expectations.
What changed
Asian stocks rebounded following signals from Warsh that the Federal Reserve lacks urgency on rate hikes.
Live updates
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Asian Stocks Rebound as Fed Rate Hike Fears Ease
Asian equities are rising after signals that the US Federal Reserve may not aggressively raise interest rates next year. This rebound follows a recovery in US equities from intraday lows and a signal from Warsh that there is no urgency regarding rates. While Japanese and South Korean equity-index futures advanced, the S&P 500 remained flat as strength in Magnificent 7 stocks offset losses from memory makers and bank earnings that missed Street expectations. Markets now shift focus toward upcoming US inflation data and bank earnings.
Why it matters
Interest rate expectations drive global equity volatility, particularly in Asia. The current shift suggests a move away from aggressive tightening. However, conflicting inflation outlooks and rising oil prices create uncertainty for future Fed policy.
What is confirmed
- Asian stocks rose following signals that the Federal Reserve may not raise rates aggressively next year.
- Equity-index futures for South Korea and Japan advanced.
- The S&P 500 closed little changed as Magnificent 7 strength offset losses in memory stocks and banks.
- Bank earnings missed Street expectations.
Still unconfirmed
- Latest inflation data is expected to show price increases are accelerating.
- Wall Street expects inflation to ease even with oil prices above $90.
- Fuel is the primary driver of inflation.
What to watch next
- US CPI inflation data release
- Upcoming bank earnings reports
- Further commentary from Warsh on rate urgency
confidence 90%Sources used for this update (16)
- pro.thestreet.com — The Week Ahead: Buckle Up
- CNBC — The latest inflation data is expected to show price increases are accelerating
- NBC News — What’s fueling inflation? Fuel.
- pro.thestreet.com — Bank Earnings Get a Cool Reception as Chip Jitters Linger
- FOREX.com — US CPI Preview: Follow the Fed and Look Past the Hot Headline
- Bloomberg.com — Asia Stocks to Gain on Signal for Fewer Fed Hikes: Markets Wrap
- Yahoo Finance — Wall Street Sees Inflation Easing Even With Oil Above $90
- en.bloomingbit.io — Asian Stocks Rebound as Fears of Further Fed Tightening Ease; Oil Prices Rise
- economictimes.indiatimes.com — Global Market Today: Asian stocks rise on Fed rate signal, oil gains
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- bfi.uchicago.edu — The Pie: University of Chicago Economics Podcast | Becker Friedman Institute
- www.straitstimes.com — Stocks, futures rise as Fed bets ease after Warsh: Markets wrap
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