Trump Threatens Fed, S&P 500 Faces Pullback

The US stock market faced a pullback on Monday, as Donald Trump intensified his attacks on the Federal Reserve, threatening to remove Fed Governor Lisa Cook. This latest escalation highlights the ongoing debate surrounding the central bank's independence. The news sent ripples across the market, raising concerns over US monetary policy and its impact on the broader financial system. Trump’s comments come at a time when market participants are already closely monitoring inflation figures and interest rate decisions from the Federal Reserve.

Trump’s Trade War Threat: 200% Tariffs on China Over Rare-Earth Magnet Exports

As the US-China trade conflict continues, President Trump has threatened to impose a 200% tariff on Chinese exports if China restricts rare-earth magnet exports. These materials are vital for high-tech industries and renewable energy technologies. The move has sparked fears of further trade instability between the world’s two largest economies. Investors are watching the situation closely, as it could significantly affect US-China trade relations and broader global supply chains.

Jefferies Raises S&P 500 Target to 6,600 Amid Strong Corporate Earnings

In contrast to broader market concerns, Jefferies has raised its year-end target for the S&P 500 to 6,600, citing strong corporate earnings and a recovering US economy. Leading brokerages like UBS, Citigroup, and HSBC have also adjusted their targets for the S&P 500 index, reinforcing the positive outlook for the US stock market. These revisions come amid strong earnings reports and economic resilience, signaling that US stocks may continue to perform well in the coming months.

Nvidia’s Slower Growth and High Expectations Ahead of Earnings

Nvidia is facing high expectations ahead of its earnings report this week. After five consecutive quarters of triple-digit revenue growth, Nvidia’s growth slowed to 69% in the last quarter. Investors are focused on the company’s AI-driven growth, especially as Nvidia’s reliance on hyperscalers (cloud computing providers) exposes it to risks tied to shifts in the AI industry and economic outlook. Big Tech companies are expected to invest $320 billion in AI technology and data center infrastructure in 2025, underscoring the importance of the sector’s growth.

S&P 500 Faces Bearish Signals: Technical Indicators Suggest Pullback

The S&P 500 index is encountering significant technical resistance, particularly around the 6,400 level. Analysts have identified bearish MACD divergence, which suggests that the index could face a deeper pullback in the near term. Key support is expected to be at the 6,400 mark, with further declines possible if this level fails to hold. Traders and investors should remain cautious as the US stock market faces multiple headwinds, from political tensions to inflation concerns.

Takeaway for Investors: Stay Ahead with the Latest Market Insights

As the US stock market navigates through political uncertainty, trade tensions, and economic volatility, staying informed is crucial. Platforms offering real-time market insights, like Ultima Markets, provide traders with the tools they need to track key economic indicators, monitor currency fluctuations, and make informed decisions based on the latest data.