Interest Rate Week: Fed & BoC Cut, BoJ Pause, Nasdaq & S&P 500 ATHs

In this webinar, I unpacked the key drivers shaping markets right now—interest rate decisions across the U.S., Japan, and Canada, the bearish turn in the U.S. dollar, and U.S. indices pressing into all-time highs.

Central Banks in Focus

Global monetary policy remains the anchor for market direction. Each central bank is navigating its own balance between inflation and growth.

• U.S. Federal Reserve: Balancing sticky inflation with a weakening labor market.
• Bank of Japan: Gradually shifting from ultra-loose policy, putting JPY back in play.
• Bank of Canada: Fighting inflation but constrained by slowing growth.

Bearish USD vs. Stronger JPY

Currency markets are reflecting these policy differences most clearly in the USD/JPY pair. The dollar’s momentum is fading, while the yen is quietly regaining ground.

• Fiscal risks and labor weakness are weighing on USD sentiment.
• Safe-haven flows and BOJ policy shifts are supporting JPY.
• USD/JPY highlights this divergence, pointing to a bearish dollar narrative.

Wall Street at All-Time Highs

Equities tell a different story, with investors leaning into risk assets. The Nasdaq and S&P 500 continue to set new records, fueled by sector strength and institutional flows.

• Nasdaq driven by AI momentum, semiconductor demand, and tech earnings.
• S&P 500 lifted by broad sector resilience and institutional flows.
• Optimism around earnings continues to outweigh recession fears.

Key Takeaways:

• Fed caught between sticky inflation and weakening jobs.
• BOJ policy shifts creating renewed demand for JPY.
• Nasdaq fueled by AI and semiconductor demand.
• S&P 500 lifted by broad sector resilience.

Watch the full breakdown and chart analysis to understand where opportunities may emerge next.