Federal Reserve Chairman Kevin Warsh stated that investment in artificial intelligence is of great benefit to the U.S. economy. As a result, U.S. stock index futures rose, and the gains in Asian stock markets expanded. Traders lowered their expectations for Federal Reserve interest rate hikes, leading to a weakening of the dollar.
After Walsh made the above remarks in Bangkok, the NASDAQ 100 index futures rose by up to 0.2%; the futures had previously fallen by 0.5%. MSCI The Asia-Pacific stock index rose by 1.5%, and the South Korean Composite Index rose by 3.6%.
Although Walsh did not specifically comment on monetary policy or the outlook for the U.S. economy, after his speech, the market's expectation of a Fed interest rate hike in October dropped from over 25% on Thursday to 15%. Walsh also stated that his task force on productivity and employment will hold on-site hearings in the San Francisco Bay Area next month.
The Bloomberg Dollar Index fell by 0.2%, while gold rose by 0.2% to around $4,180 per ounce.
Chalu Channana, Chief Investment Strategist at Shengbao Market, stated: "Wash didn't promise another interest rate hike, so the market has partially discounted the Fed's expectations for a rate increase. Against the backdrop of strengthening inflation data, he said, 'I won't pre-judge the outcome of the interest rate meeting,' which is not favorable for the dollar."
