Trump's statements shook the markets: Eyes are on the Fed!

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In the latest market assessment shared by Singapore-based crypto trading company QCP Capital, it was stated that recent data from the US economy painted a resilient picture, but economic uncertainties still persist. The non-farm payroll data released on Friday exceeded expectations with an increase of 177 thousand, while the unemployment rate remained steady at 4.2%. QCP Capital analysts warned that despite this strong outlook, the effects of recently imposed tariffs have not yet fully reflected in the economy.

According to the report, the markets approached this data with "cautious optimism." The S&P 500 index rose for the 10th consecutive day, recovering previous declines due to the positive impact of the data and expectations of a possible easing in trade tensions.

QCP Capital stated that with the end of the earnings season, market focuses have shifted back to US-China trade relations and Fed policies. Following the announcement that US President Donald Trump would not meet with the Chinese administration this week, US stock futures experienced a slight decline. However, Trump's recent comments about the potential announcement of new trade agreements with other countries kept the markets on alert.

It is expected that the Federal Reserve will keep interest rates unchanged in this week's meeting. Despite recent data indicating that inflationary pressures have eased, there is a risk of renewed inflation due to rising import tariffs. The report also noted that the Fed’s stance against President Trump’s pressure for interest rate cuts is a critical question mark.

In its assessment, QCP Capital highlighted that despite announcing record losses in the first quarter, the Strategy company's decision to maintain its Bitcoin strategy and double its capital increase goal to 84 billion dollars demonstrates the company's strong belief in digital assets. Furthermore, the report indicated that the ongoing regular inflows into spot Bitcoin ETFs reflect the sustained interest of institutional investors and that Bitcoin's role in portfolio diversification is increasingly growing.

Published: May 5, 2025 15:51

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