First Fed cut is priced in for July! | MarketTalk: What’s up today? | Swissquote

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The ECB slowed the pace of rate hikes to 25bp this month, bt left the door wide-open to more rate hikes in the coming months.
The growing divergence between the ECB and the Fed policy outlooks builds a stronger case for a significantly higher euro against the US dollar; price pullbacks continue to be interesting opportunities to strength long positions in the single currency.
In the US, stress around the US regional banks don’t seem to be abating. Lately on the chopping block are PacWest and Western Alliance, that lost 50% and 38% respectively yesterday.
US banks slid close to 3% yesterday.
Bank stress fuels Fed doves. As of today, the market is not only expecting three rate cuts in the second half of this year, but price in the first potential rate cut for July.
Happily, Apple results gave a smile to investors after the bell. Apple’s overall sales fell for the second quarter in a row, but iPhone sales were stronger than expected and helped Apple beat both revenue and profit expectations.
Apple’s share gained 2.5% in the afterhours trading.
Today, investors will closely monitor the US jobs data. A soft NFP read, and ideally softening wages growth could further fuel the Fed doves and boost Fed rate cut expectations.
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