U.S. Stock Market Shows Favorable Trends
In the current political climate, Donald Trump continues to exert significant influence on the U.S. Federal Reserve through public pressure and strategic maneuvers, although he holds no formal authority over the institution's decisions.
Trump's influence includes threatening to remove Chair Jerome Powell, appointing allies sympathetic to his views, and engaging in unusual actions such as personally visiting the Fed’s headquarters. However, the Federal Reserve's independence remains a key principle supported by many experts, and legal experts largely dispute the legitimacy of any attempt to remove Powell based on administrative or budgetary grounds.
Meanwhile, in the world of business, Spotify announced plans to raise the price of its premium subscription in selected markets starting in September. The new price for the individual premium plan will be 11.99 euros per month, an increase of 1 euro.
In the stock market, the S&P 500 had a significant drop on Friday, its biggest daily decline in over two months. However, it rebounded on Monday, gaining 1.5% to 6,329 points. The Dow Jones Industrial Average also showed positive signs, closing 1.3% higher at 44,173 points on Monday. The tech-heavy Nasdaq index climbed 2% to 21,053 points on Monday.
Elsewhere, shares of Lyft rose 3.4% following the announcement of a partnership with Chinese tech giant Baidu. The partnership aims to deploy robotaxis in Europe starting next year.
In the automotive sector, Tesla's current stock price is $309. Tesla awarded Elon Musk a stock package worth $29 billion, keeping him at the company until at least 2027.
Economic data released this week shows a weak jobs market, fueling hopes for lower interest rates on Wall Street. New orders in the US industry decreased by 4.8% in June, as reported by the Commerce Department. Market participants now expect at least two quarter-point rate cuts by the end of the year.
However, the credibility of the Fed and the accuracy of the statistics it uses to make policy decisions are now under scrutiny. This comes as the S&P 500's significant drop on Friday raises questions about the Fed's monetary policy decisions.
[1] Source: Financial Times, Bloomberg, Reuters, and The New York Times.
Community members and businesses alike question the reliability of the Federal Reserve's economic data and its impact on employment policies, given the current examination of the Fed's credibility and the S&P 500's market fluctuations. Investors are particularly keen on keeping a close eye on employment policies and financial markets, as they potentially influence broader economic stability, including the job market and industry growth.
