Wall Street indicators deepen their losses to federal warnings

Federal Reserve President Jerome Powell argued that commercial tensions could undermine the goals of the bank associated with employment and price stability, a new wave of fluctuations in “Wall Street”, as US equity indicators returned to the sharp drop, while secure assets such as treasury and gold releases increased. After two days of relative calm, the pressure to the markets returned with Powell’s signal to adopt the policy of ‘anticipation and await data’ in respect of the fees launched by US President Donald Trump, removing the hope with the quick intervention of the Federal to reassure investors. The losses that started earlier in the session deepened, after two major companies in the semiconductor sector announced disappointing results related to the global trade war. When Powell was asked during his participation in the “Economic Club in Chicago” when he saw a scenario through which the federal intervention to calm the markets, he replied: ‘No’, adding that there are many questions that have not yet been decided on the consequences of Trump’s policy. He continued: “We don’t know it yet, and even we know, we can’t make deliberate decisions.” The S&B 500 index fell 2.2%, while the technological sector suffered the biggest losses with the Nasdac 100 index for 3% after the White House imposed new restrictions on the export of the company “Invidia” from chips to China. The yield on US treasury bonds dropped by 5 basis points to 4.28%for 10 years. However, the labor market “in a good place” emphasized that the job market is still “in a very good place”, where the demand and supply after work descends together, suggesting that it is expected to continue these conditions. “Many people thought that the Federal Reserve would give precedence to the inclusion of the double mandate if he had to choose, but he indicated that the stability of prices is needed to maintain a strong job market,” said Adam Phillips, the administrative director of investment at the EP Wealth Advisors. He added: “If you are waiting for a federal intervention to support the market, you should reduce the ceiling of your expectations as long as the inflationary pressure remains high. Do not expect a close support to monetary policy.” As for Michael Billy, the director of research at the FBB Capital Partners, he said that “Powell gave shares under the wheels of the bus,” and added: “This year was full of disappointments, starting with disappointing fees, and now federal investors have dropped the investors. pronounced, considering that stable interest rates should be held until the effects of the new fees are clear. dropped, after the company warned at the cost of $ 5.5 billion associated with the shares and obligations of the “H20” disc during this term. The fear increased after ASML announced less than expected orders. The US government on Monday informed the company “Invidia” that the export of the “H20” church to China requires an “indefinite” license. The company said in a announcement that the new rules are based on Washington concerns that “the products in question can be used in a supercomputer apparatus in China, or to be directed at it.” “This step is concerned for two reasons: First, it shows the volatile nature of Trump’s drawings, as previous concessions have been taken to Anvidia. Secondly, it indicates that the tension between the United States and China is deep and continuous, despite the apparent surface of the surface.” Increased fluctuations and fear of shrinking trade with the increase in fluctuations, investors tend to be safe assets such as gold, which recorded a record level and the Swiss franc. The dollar has fallen with the deepening of trading tension and weakening the confidence in the global reserve currency. Among the factors that put the risky assets under pressure, the World Trade Organization has reduced its expectations for the year, saying that the world trade in 2025 will fall by 0.2%, that is, about three percentage points if previous expectations are not imposed as new fees. Reports said China is looking for an important figure, in addition to more respect from the Trump administration, before returning to the negotiating table. “Although we expect commercial talks to eventually yield, it seems that the lead of the abyss between the United States and China will continue in the short term.” In a parallel context, US retail sales for March increased by 1.4%, which is the largest increase in two years, as Americans have accepted extensive spending, and bought everything from cars to electronics in the days before President Donald Trump’s announcement of Customs duties.