Federal Reserve Chair Jerome Powell testifies to Congress, hinting at no immediate rate cuts. Meanwhile, President Trump's tariffs on steel and aluminum imports add to economic uncertainty. Orange juice futures plunge despite tight supply, while DoorDash, Gilead Sciences, and Super Micro report standout quarterly results.
Federal Reserve Chair Jerome Powell addressed the Senate Banking Committee, stating that policymakers are not in a rush to implement further interest rate cuts. This testimony, the first of two appearances for Powell on Capitol Hill this week, comes amidst growing economic uncertainties, including President Trump's imposition of 25% tariffs on steel and aluminum imports.
Traders will be closely watching Wednesday's release of the January consumer price index (CPI) for further insights into inflation trends.The CPI is anticipated to show a 0.3% increase from the previous month and a 2.9% rise year-over-year, according to Dow Jones. Despite these concerns, experts remain optimistic about the economy's resilience. Ed Yardeni, president of Yardeni Research, emphasized the strength of the American workforce in driving economic growth despite political challenges. Investors will also be paying attention to Powell's testimony before the House Committee on Financial Services and fresh quarterly results from prominent companies.Orange juice futures experienced a significant downturn, marking their eighth consecutive negative session and reaching their lowest point since May 9, 2024. The decline, despite record highs in December 2024, has surprised market observers due to ongoing supply constraints in Florida and Brazil. The USDA revised its Florida orange production forecast downward by 4%, citing a combination of factors, including high orange juice prices potentially leading consumers to seek alternatives, growing health concerns surrounding sugar content, and speculation that production will eventually rebound.In other market developments, DoorDash's stock surged nearly 6% following better-than-expected fourth-quarter revenue, while Gilead Sciences advanced 4% after exceeding analysts' earnings and revenue estimates. Super Micro, despite slashing its fiscal 2025 full-year revenue guidance, saw its stock rise over 4%. Stock futures remained relatively stable as investors anticipated the January CPI report, which is expected to shed light on inflation trends
Economy Markets FEDERAL RESERVE INTEREST RATES TARIFFS INFLATION ORANGE JUICE STOCK MARKET DOOR DASH GILEAD SCIENCES SUPER MICRO
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