01/07/2025 Daily Reports
• US stock futures are down slightly after the S&P 500 and Nasdaq closed at fresh all-time highs on Monday.
• Market optimism has been driven by hopes for more trade deals and potential interest rate cuts from the Federal Reserve.
• Focus now shifts to President Trump’s massive tax and spending bill, which faces significant resistance in the Senate.
• The bill is expected to add roughly 3.3 trillion dollars to the US national debt, sparking concerns among investors and policymakers.
• Trump has also expressed frustration over slow US-Japan trade talks, while Treasury Secretary Bessent warned of possible higher tariffs if no progress is made before the July 9 deadline.
• Tesla shares dropped over 4 percent in pre-market trading following a public dispute between Elon Musk and Trump over subsidies. The company also reported its sixth straight month of falling sales in Sweden and Denmark.
• Analysts warn markets are ignoring key risks, including:
o Escalating trade tensions
o Rising US debt burden
o Signs of economic slowdown
o The Fed’s limited room for further rate cuts
• Investors are watching for:
o US manufacturing and job openings data
o Fed Chair Powell’s comments at the ECB forum
o Friday’s crucial US jobs report
What’s Next?
• The market’s recent record-breaking run has been impressive, but cracks beneath the surface shouldn’t be ignored. Political instability in Washington, trade unpredictability, and the ballooning US debt burden are real headwinds. Add to that the uncertainty around Fed policy and it’s clear that investor optimism may be running ahead of economic reality. While AI enthusiasm and strong tech earnings are keeping momentum alive for now, staying cautious, diversified, and data-driven feels like the smartest approach in this environment.
Open A Live Account
CDO has wide range of tools, professional and friendly support for clients to achieve their financial markets trading goals. Open a live account now to enjoy this experience with virtual deposit.
US Stocks Hit Records on Trade Hopes, Gold Rises on Rate-Cut Bets; 1MDB Liquidators Sue Standard Chartered
• US stock futures were flat, positioning major indexes to hit more records following a bumpy first half, as Wall Street’s mood improved with news of US trade deal advances with Canada and the European Union. This is despite the impending July 9 deadline for President Trump’s “reciprocal” tariffs, although Canada largely dropped its digital services tax on US technology giants in a bid to revive stalled trade negotiations. Gold prices jumped for a second day, driven by expectations the Federal Reserve will resume rate cuts later in the half, a sentiment bolstered by a weaker dollar and optimism for a positive jobs report this week.
• And liquidators of Malaysia’s 1MDB sovereign wealth fund have filed legal action against Singapore’s Standard Chartered Bank. They allege the bank’s facilitation of fraud caused over $2.7 billion in financial losses and argue the bank overlooked “glaring red flags” in over 100 intrabank transactions between 2009 and 2013 that concealed stolen funds’ movement. This is part of a series of efforts to recoup billions stolen from 1MDB. Meanwhile, Tesla’s robotaxi pilot went live smoothly in Austin, with CEO Elon Musk verifying the launch, despite analysts doubting the valuation of the stock, suggesting that it may already be factoring in excessively bullish hopes for the autonomous service.
CDO TRADER
CDO TRADER, our cutting-edge trading platform, follows the technology from the forefront with new features added continuously. Moreover, CDO TRADER is now available for Android and iOS! So it allows you to trade on the go!
