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Investors Eye U.S. GDP and Jobless Claims as Speculation Mounts Over Fed Rate Cut

3 months ago

Investors are keenly awaiting U.S. GDP and initial jobless claims data, set to be released later Thursday, for further insights into the economy’s health. The former New York Federal Reserve chief has called for lower borrowing costs, advocating for a rate cut at next week’s meeting. While some analysts view this potential move as a proactive measure to stave off a recession, others worry it may signal a sense of urgency among officials.

The dollar index remained relatively unchanged on Thursday, mirroring its performance from the previous day. Treasuries saw gains during Asian trading, driven by expectations that the Fed is nearing a rate cut, as evidenced by the steepening bond curve in the prior session.

Meanwhile, oil prices declined, part of a broader retreat in commodities, as concerns over a sluggish economic outlook for China overshadowed reports of lower U.S. stockpiles. Gold extended its losses from Wednesday, further reflecting the cautious market sentiment.

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