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01.08.2025 03:20 PM
US Market News Digest for August 1

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Trump pushes for rate cut

Donald Trump is calling on the Federal Reserve to lower interest rates to around 1.75%. The concern lies in the country's high national debt and a growing budget deficit, which could trigger a fiscal crisis.

This statement increases pressure on the Fed and shapes investor expectations. Such rhetoric may fuel market volatility ahead of the elections.

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JOLTS points to cooling labor market

According to the JOLTS report, the number of job openings in the United States dropped to 7.44 million in June, while hiring declined by 261,000. This signals a labor market slowdown, although the quit rate remains stable.

The deceleration could weaken the case for further monetary tightening. Some analysts interpret this as a sign that the employment cycle may be nearing a turning point.

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ADP reports job growth, but markets remain cautious

According to ADP, the private sector added 104,000 jobs in July, exceeding expectations but failing to offset the prior slowdown in hiring.

Forecasts remain cautious due to the divergence between ADP data and official statistics. Steady job growth may offer temporary support to the stock market.

However, market participants are waiting for the official Labor Department figures. Follow the link for details.

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Unemployment claims stable, but risks rise

The number of initial unemployment benefit claims held steady last week at 218,000. However, the data suggests a potential acceleration in unemployment, which could impact monetary policy.

Prolonged stabilization at the current level may indicate structural changes in the labor market.

An increase in continuing claims is also raising concerns among economists. Follow the link for details.

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Fed maintains cautious course

Jerome Powell confirmed that the Federal Reserve will continue its "moderately restrictive" policy, disregarding pressure to cut interest rates.

Expectations for the economy remain uncertain amid rising inflation. The central bank is aiming to maintain a balance between inflation control and slowing growth.

The head of the Fed also emphasized the importance of flexibility in responding to new data. Follow the link for details.

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Stock market drops amid tariffs and uncertainty

The S&P 500 and Nasdaq indices continue to decline as tariffs introduced by Trump weigh on sentiment. Investors are awaiting the jobs report, which may determine the future path of monetary policy.

Rising trade tensions are putting pressure on tech stocks. In addition, weakness in the consumer sector has exacerbated the broader market downturn.

Let us remind you that InstaTrade offers the best conditions for trading stocks, indices, and derivatives, helping you profit effectively from market fluctuations.

Ekaterina Kiseleva,
Analytical expert of InstaTrade
© 2007-2025

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