Global stocks take a hit as traders doubt rate cuts in 2025

Global stocks fell on Monday, while the dollar hit a 26-month high, after a hot U.S. nonfarm payrolls report prompted investors to doubt whether the Federal Reserve would cut interest rates this year. Surging energy prices have heightened concerns about steadily rising inflation as there are signs that Russian exports are falling as the United States tightens sanctions on Russia, and crude oil prices have broken through $80 a barrel. European stocks fell for a second consecutive day; the three major U.S. stock index futures fell, with Nasdaq futures falling more than 1%. Aditya Bhave, deputy chief U.S. economist at Bank of America, said: "After a very strong jobs report, we believe that the rate cut cycle is over. Inflation has been above target and there are upside risks. If the core PCE annual rate exceeds 3% and inflation expectations are unanchored, the market narrative will shift to rate hikes." Wednesday's CPI report may have more market influence than usual. (Jinshi)