Money and business

American stocks .. expectations to achieve the “S&P 500” its highest level

The American stock index Standard & Poor’s 500 is expected to record a high record with the beginning of trading this week, while the main Wall Street Industries Indexes are scheduled to continue and Nasdak will continue its positive career, according to the Indian Indian Economic Times newspaper.

American stock indicators movements

The Standard & Poor’s 500s on Friday increased by 63.10 points to 6115.07 points approaching its highest level at 6118.71 points, which it scored on January 23.
The Dow Jones Industrial Index increased by 342.87 points to 44711.43 points, and the Nasdaq compound index jumped by 295.69 points to 19945.64 points.
Also read: The Wall Street Stock Exchange .. American stock indicators are closed at a height

Standard stock market levels

The American economy has so far preserved stock markets near their standard levels, as a report stated that the number of American workers who applied for unemployment benefits last week decreased in the latest indication of the labor market strength, and this despite the fact that many declining forces burden shares prices.
Analysts stated that the sentence inflation was higher than the economists expected last month.

Inflation, customs duties and stocks

Customs duties may lead to more inflation rates more, which may mean a significant effect from markets and stock markets.
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Trump announced on Thursday his plan to increase US customs duties on imports from other countries, which will be allocated in part to the amount of tax that each country imposes on American goods.

Warning from economists

While economists warn of the pain that such definitions may have left, the financial markets have increased seriously, there is a strong belief that Trump uses his harsh words to push negotiations forward in his favor, but it may not go ahead with this entirely to avoid damage to the stock market and the economy in US.
It may take weeks or a few months to complete the necessary reviews of the customs tariffs that were announced a few days ago, according to a senior official at the White House and this means a lot of time for negotiations that can reduce the final impact.

Trump’s effect on the stock market

Observers believe that Wall Street and the stock market are working as a barrier that protects US President Donald Trump, which is dangerous because if the stock market continues to slip through every escalating threat, this may encourage Trump to take more steps, but at least at least Trump may be “trapped” little yet High inflation numbers emphasized this opinion, analyzer Thierry and Yazman in “Makawari”.

Trump retreated in his threats

Trump showed that he was able to quickly back down from his threats, as it happened when he was suspended for 30 days by customs duties by 25% announced on all imports from Canada and Mexico.
In addition to more strict pressure on the budgets of American families, inflation is likely to keep the Federal Reserve in a state of anticipation for a period of time in terms of providing relief to Americans by lowering interest rates.

Federal reserve decisions

The Federal Reserve has reduced the interest rate from September until the end of last year 2024 with the aim of making borrowing cheaper, assisting the economy and enhancing stock prices, bonds and other investments.
But at the end of 2024, the Federal Reserve warned that it may not reduce interest rates in 2025 due to concerns about the survival of inflation.
Its goal is to maintain inflation at 2 %, and low interest rates can increase inflation.

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