Can the Feds control inflationary pressures?

Wall Street ended the day with mixed results following a string of disappointing jobs reports, leaving investor sentiment uncertain.

Inflation pressure

Hopes remain for a soft landing, where the Federal Reserve can control inflation without severely impacting growth, supported by the recent 50 basis point rate cut from this month’s policy meeting. The Dow gained 0.3%, while the S&P 500 and Nasdaq closed down by 0.1% and 0.41%, respectively.

In Hong Kong, the Hang Seng Index (HSI) surged for the fourth straight day, reaching its highest levels in 26 years with record trading volumes. A buying spree, spurred by fresh economic stimulus from Beijing, pushed the index past the 20,000 mark.

Meanwhile, the FBM KLCI remains in a consolidation phase despite multiple attempts to break out. However, we expect an upward momentum driven by buying interest due to attractive valuations, improving economic conditions, and strong corporate earnings. As a result, we anticipate the benchmark index to range between 1,660 and 1,670 today.

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