Both Donald Trump and Jeromy Powell have their own supporters. When Trump urged to cut interest rate and Powell refused, we have to see the market response. Now, it opened a new page as said in yesterday’s Yahoo new. “American companies poised to outperform global markets again”.
During the press conference of last night, a reporter asked Powell were he ready to cut interest rate in the future. Powell thought for a short while and replied in a definite answer that he had no plan to cut interest rate. This should be the hawkish attitude of Powell recently. Originally market expected if he released dovish speech could push up the stocks, but now even hawkish still could push up. That means the conference made people knew that Powell had considered before replying and not just shout with the IBM (International Big Mouth). If there is no live reply and only issue a script, people could not know this.
High GDP growth traditionally should give a rise of interest rate in order to prevent inflation and should not cut interest rate as Trump said. This is the basic economic theory in year one of a university course.
Powell wins, 3 major indexes continue to roar up and will touch the target of 6,600 where most people expect soon.
In the whole July, the Fear & Greed Index was around 75 to 76 points and now goes down to 66 points. For this week we have 4 giants among the Magnificent Seven having result announcements. META and MSFT both having jumping gaps up and MSFT is the second company that touches the capitalization of $4 Trillion, just after NVDA. Market focus is on result announcement and economic indicators like ADP, Initial Claims and Unemployment, not tariffs, Ukraine or Gaza.