**ASX Expected to Gain as US Markets Edge Up Despite Fed Tensions, Trump Comments**
*Adapted and expanded from an article by Sarah Turner for the Australian Financial Review, with additional market insights.*
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Global financial markets are navigating a period of heightened volatility, with the Australian Securities Exchange (ASX) poised for a modest opening gain. This comes after US equities saw a slight uptick, bolstered by a mix of resilient corporate results, ongoing trade uncertainties, and renewed tensions between President Donald Trump and the US Federal Reserve.
**Key Points:**
– ASX futures pointed to an increase, tracking gains from Wall Street overnight.
– US equity markets posted slight improvements, reflecting optimism over corporate earnings even as global trade worries linger.
– US President Donald Trump intensified criticism of the US Federal Reserve, blaming its policies for impeding economic growth.
– Global economic data remains mixed, fueling speculation about future monetary easing by central banks worldwide.
### Positive Momentum in US Equities
US stocks edged higher as investors digested recent economic data and weighed signals from corporate earnings season. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posted gains. While the uptick was relatively minor, it contributed to broader optimism that has seen American equity indices recover some ground following earlier August declines.
– The S&P 500 rose 0.1 percent, to close at 2,887 points.
– The Dow Jones Industrial Average advanced 0.2 percent.
– The Nasdaq Composite Index climbed 0.2 percent.
This performance came on the heels of favorable earnings results from several S&P 500 constituents. Sectors such as technology, financials, and consumer discretionary stocks posted modest advances, offsetting softness in energy and materials.
### The “Trump vs Fed” Saga Intensifies
A key theme impacting market sentiment is the increasingly contentious relationship between the White House and the Federal Reserve. President Trump renewed his criticism of Fed Chair Jerome Powell, blaming the central bank’s monetary policy for weakening the US economy during trade negotiations with China and other major partners.
In a series of public comments and tweets, Trump insisted the Federal Reserve should lower interest rates more aggressively, arguing that Fed inaction is placing US businesses at a disadvantage globally. He also called for “at least 100 basis points” of cuts, a far more dramatic loosening than the modest quarter-point reduction delivered in July.
**Market implications:**
– Investors are split on the likely path for US interest rates, with bond markets reflecting expectations for multiple rate cuts before year-end.
– Trump’s ongoing appeals for rate reductions have injected uncertainty into the Fed’s already cautious approach, making its next moves closely watched events on global trading floors.
### Bond Yields and Rate-cut Speculation
The debate about central bank policy has played out visibly in bond markets. US Treasury yields remained under pressure, mirroring persistent expectations that the US Federal Reserve and other central banks will be compelled to deliver further monetary stimulus.
– The benchmark 10
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