U.S. markets rebound as inflation cools, with Bitcoin steady at $81,754. Trump predicts a market surge, citing corporate optimism and economic policy shifts. Investors watch for a potential Fed rate cut in June.
U.S. stock and cryptocurrency markets rebounded Wednesday, driven by easing inflationary pressures and renewed investor confidence. Former President Donald Trump expressed optimism about the country’s economic future, predicting that financial markets would “soar” under his leadership.
Inflation Declines, Markets Respond
Fresh U.S. inflation data signaled a continued decline in price pressures, lifting market sentiment. Bitcoin remained steady at $81,754, while the cryptocurrency market cap stabilized at $2.68 trillion. Major stock indices also posted gains as investors speculated on potential Federal Reserve rate cuts in June.
Trump’s influence on market sentiment remains significant. Following the inflation report, he reassured investors about his economic vision. “Markets are gonna soar when they see what’s happening,” he stated. He cited growing corporate optimism, emphasizing record-high attendance at a recent Business Roundtable event featuring CEOs from America’s largest companies.
Trump’s Economic Outlook
Trump reiterated his commitment to cutting taxes and regulations, arguing that such measures would strengthen the economy. “There’s tremendous optimism out there,” he said, urging Democrats to support policies that favor economic expansion.
Treasury Yields and Fed Policy
The 10-year Treasury yield inched up to 4.305%, reflecting cautious optimism. While cooling inflation bolsters confidence in a potential Fed rate cut, economic uncertainty persists as markets weigh political rhetoric against broader fiscal realities.
What’s Next?
With the Fed’s next policy decision approaching, investors remain watchful. The balance between political assurances and actual economic shifts will determine the market’s trajectory in the coming months.
Investors should monitor inflation trends, interest rate decisions, and corporate earnings reports to navigate potential market shifts effectively.
