Traders worry about overheating U.S. economy, doubt Fed has room to cut interest rates

A series of market swings broke a steady trend higher, with traders signaling they didn't want to see overly hot U.S. economic data, Golden Ten reported. Although U.S. stocks rebounded on Friday and cross-asset investors escaped their worst week since 2022, the stock and bond markets both posted their biggest losses this year on Monday and Tuesday. Strong jobs and factory output reports, as well as soaring oil prices, have raised questions about whether the Federal Reserve has room to cut interest rates. Apollo Global Management economist Torsten Slok said the market's impact on the economy is a new issue facing bulls. He warned that rising asset prices were running counter to central bankers' goals and predicted no interest rate cuts this year.