Weak Outlook in Equities After Fed Statements

Economy • Markets

Global markets showed a weak outlook following cautious remarks from Federal Reserve officials, leading to declines in equities, a weak performance for the dollar, falling oil prices, and steady movements in gold and copper.

The series of measured comments began with Fed Chair Jerome Powell and continued with Goolsbee and Daly, which collectively dampened the momentum of equity markets this week.

After the rally sparked by the artificial intelligence sector, the S&P 500 fell 0.2% on Wednesday, marking its second consecutive day of losses. While U.S. equity futures showed slight recovery, Asia-Pacific stocks rose moderately by 0.2%. Kyle Rodda, senior market analyst at Australia-based Capital.com, noted that the Fed’s careful language curbed the rally long anticipated to cool down.

FX, Rates & Commodities Snapshot

  • The dollar continued its weak performance against major currencies amid rising prospects for new tariffs. The Bloomberg Dollar Index slipped 0.1%. USD/TRY traded around 41.47 in early hours.
  • Japan’s 40-year government bond auction saw demand slightly above the 12-month average, boosting confidence in ultra-long-dated assets.
  • The U.S. 10-year Treasury yield held near 4.14%.
  • Crude eased after the sharpest daily rise since July, triggered by tougher remarks from Trump on Russia: WTI down 0.5% to 64.7, Brent down 0.4% to 69 per barrel.
  • Spot gold hovered near $3,740/oz.
  • Copper traded near a one-year high around $10,310/ton after Freeport cut its sales forecast following a mining accident in Indonesia.

Disclaimer: This article is for information purposes only and does not constitute investment advice.