January 19, 2024 (MLN): Asian markets rose on Friday following a tech-led rally on Wall Street that helped soothe traders' concerns that the Federal Reserve will likely not cut interest rates as early or by as much as hoped this year, as APP reported.
US data points on inflation and jobs, and comments from central bank officials have combined with growing geopolitical tensions to drag equities in January, bringing an end to an end-of-year rally.
The readings, showing consumer inflation topping expectations and a resilient labor market, show the world's number one economy remained in rude health despite borrowing costs at two-decade highs.
And on Thursday, fresh figures pointed to a surprise slowdown in jobless claims, suggesting the Fed would likely have to keep rates elevated for some time to make sure inflation does not pop back up.
In light of the latest data, traders have lowered their bets on a March interest rate cut to a little more than 50%, down from 80% last week.
