The American labor market is showing signs of a slowdown, as indicated by recent data that shows American employers added fewer new jobs than expected in April. This signals a potential slowdown in the American economy, which could lead to a decrease in inflation and possible future interest rate cuts by the Fed. Despite this news, the Fed has announced that it will keep its key interest rate steady for now.
Investors are advised to take a cautious approach due to the uncertain market conditions. Some experts suggest reducing risk in portfolios and pursuing a defensive investment strategy. The Fed’s decisions regarding interest rates may also be influenced by upcoming elections, adding another layer of complexity to an already uncertain situation.
In contrast, the Swiss National Bank has already cut interest rates but this has had little impact on the Swiss stock market. The next interest rate cut by the SNB is expected in September. Overall, market conditions remain uncertain and investors are advised to proceed with caution and closely monitor economic developments.
