MONEY MASTER

Asian equities are expected to open lower on Friday after fresh concerns over US bank credit quality dented global risk appetite. Wall Street Weakness Spills Over Futures for  Japan ,  Australia , and  Hong Kong  pointed lower in early Asian trading, mirroring the cautious tone on Wall Street. The  S&P 500  dropped  0.6% , dragged down by a  2.8% decline in financial stocks , while the  Nasdaq 100  fell  0.4% . Contracts for US equities remained soft early Friday, underscoring persistent investor unease. Flight to Safety: Gold and Treasuries Rally Safe-haven assets strengthened overnight. Gold  surged  2.8%  to above  US$4,326 per ounce , setting a new record. US 10-year Treasury yields  fell five basis points to around  4% , while the  two-year yield  dropped seven basis points to its lowest since 2022. The  US dollar weakened , lifting the  Japanese yen , which extended its thr...

  Key Takeaways: Dimon remains cautious on the US economy, citing the  lagging impact of tariffs, immigration, geopolitics, and fiscal policy . He warned that  expected Fed rate cuts will be immaterial  amid weakening conditions. JPMorgan is preparing for more  banking sector consolidation , while continuing its European digital expansion. Dimon’s Economic Concerns JPMorgan Chase CEO Jamie Dimon said the  full effects of Trump-era tariffs and new geopolitical headwinds  have yet to materialize, stressing that these risks often unfold over long cycles. Speaking on the  Office Hours: Business Edition podcast, he cautioned investors not to underestimate the delayed impact of tariffs, immigration pressures, and fiscal measures from Washington. “The economy is weakening,” Dimon said separately on CNBC, adding that Federal Reserve interest-rate cuts will have only a limited effect in countering the slowdown. Market and Policy Outlook While US GDP growth...

  Key Takeaways: Bostic's Revised View on Rate Cuts:  Federal Reserve Bank of Atlanta President Raphael Bostic now forecasts only  one rate cut  this year, down from two, due to the persistent inflationary pressures caused by ongoing tariff hikes. Inflation Outlook:  Bostic believes inflation will be  bumpy  and will not reach the Fed's 2% target until  early 2027 —a delay from previous expectations. He also linked the impact of  tariffs  as a contributing factor to the slower progress toward this target. GDP and Employment Forecasts:  The Fed projects  U.S. GDP  to grow by  1.8%  this year, slightly down from a previous estimate of  2.1% . However, Bostic expects the unemployment rate to remain strong at  4.2% to 4.3%  by year-end. Impact of Tariffs:  Bostic expressed concerns that the  increased tariffs  could drive inflation further, posing risks to employment if consumer sentimen...

Russell 2000 Extends Decline Amid Policy Uncertainty The  Russell 2000 Index, which tracks small-cap stocks, has fallen about 10% from its late-2024 peak , as optimism over  US President Donald Trump’s policies fades . Corporate leaders are also growing increasingly pessimistic, with  Bank of America’s analysis showing the most negative sentiment on small-cap earnings calls since 2004 . Reality Check for Small-Cap Optimism Small-cap stocks initially surged post-election on hopes that  Trump’s pro-business policies and tariffs would boost US-based companies . However, reality has set in, as  higher-for-longer interest rates, economic uncertainty, and potential trade war risks pressure earnings and balance sheets . Sectors vulnerable to  trade tariffs, including autos, capital goods, and transportation, make up 15% of the Russell 2000 , compared to just 9.1% in the  S&P 500 , according to Bloomberg Intelligence. Inflation, Growth, and Interest Rate P...

 The S&P 500 soared to an all-time high, surpassing the 6,000-point mark on Friday, fueled by optimism over Donald Trump’s decisive victory in the U.S. presidential election . At the same time, Treasury yields retreated as investors celebrated the potential economic policies under the newly re-elected president. While the broader global market sentiment was subdued, particularly due to disappointment over China’s lackluster fiscal support , U.S. investors were undeterred. The S&P 500 Index hit an intraday peak of 6,012.45 points , ultimately closing up 0.4%. The Dow Jones Industrial Average rose 0.6%, while the Nasdaq Composite remained flat, posting its best weekly performance in months. Shares of Tesla Inc. saw a dramatic 8.2% surge , driving the company’s market capitalization to a staggering US$1 trillion (RM4.38 trillion) for the first time since 2022. This spike came amid growing investor confidence in Musk's support for Trump , signaling that the business-fr...

Despite the Federal Reserve's half-percentage-point interest rate cut last week, public sentiment about the economy remains uncertain. While lower rates have begun making credit cheaper for households and businesses—leading to reductions in mortgage rates and corporate bond yields —the impact has yet to be fully felt by consumers. The Fed's recent move marks the first in a series of expected rate cuts, aimed at easing credit conditions and potentially improving the financial outlook for Americans. However, it is unclear how quickly this will influence voters' perceptions ahead of the November 5 US presidential election . Inflation has dropped sharply, with the consumer price index (CPI) falling from over 9% in mid-2022 to 2.6% in August 2024. Yet, Americans like Julie Miller from Nevada, one of the battleground states, still face economic pressures. While Miller's daughter struggles to buy a home due to high prices, rising costs at places like Taco Bell have forc...