The US NAS 100 was lower on Wednesday, following some mixed inflation data.
The price of the NAS 100 has seen a potential bearish setup on Wednesday and that may be a warning sign after the inflation data.
President Trump has been critical of the Fed Chair Jerome Powell for his failure to cut interest rates.
Now his Vice President, JD Vance, has also taken aim at Powell, saying:
“The president has been saying this for a while, but it’s even more clear: the refusal by the Fed to cut rates is monetary malpractice,” Vance wrote.
There is the potential that Jerome Powell will fail to raise rates next week and signal a desire for them to remain higher. That could shake the market from its recent complacency after the trade war price dump quickly bounced to the highs. Another worry for tech bulls is that the recent earnings season has not boosted the tech stock market.
US consumer prices increased less than expected in May, with cheaper gasoline prices partially offsetting higher rents, but inflation is expected to jump in the coming months on the back of the Trump administration’s import tariffs. That could mean that the Fed Chair continues to talk of higher-for-longer interest rates. He may also hold rates steady to attract bond investors after the recent demand shortage in the Japanese bond market.
Retail giant Walmart said last month that it would start raising prices in late May and June. The Federal Reserve is expected to keep interest rates unchanged next Wednesday, with financial markets hoping for monetary policy easing in September.
“This report is another indicator that, before tariffs and economic uncertainty, we were well on our way to inflation falling back to target and that the main impediment to future progress is tariff-related price increases,” said Daniel Hornung at MIT.