Thailand’s SET Index fell 15.03 points or 1.10% to 1,352.96 points, the lowest in nearly five months amid concerns of a slower Fed’s rate cut in 2025 after a strong US jobs report last week.
InnovestX Securities stated that the U.S. non-farm payroll numbers exceeded expectations, fueling concerns that the Fed might delay rate cuts. This is reflected in the rising U.S. bond yields and a stronger dollar, presenting downward pressure on the index. Investors are eyeing support levels at 1,360 and 1,350 points respectively, while the market’s recovery appears to be capped around the resistance levels of 1,375-1,380 points.
Goldman Sachs has revised its forecast for Federal Reserve rate reductions this year, trimming its expectation down to two cuts from an initially projected three. This change arises from heightened concerns over persistent inflation and a resilient employment market.
The investment bank now anticipates two rate reductions in June and December of 2025, with another cut in 2026, which would ultimately lower the Fed’s terminal rate to a range of 3.5% to 3.75%. This follows from current levels of 4.25% to 4.5% and comes on the heels of stronger-than-expected December nonfarm payrolls data. Such robust figures have dampened expectations for immediate rate cuts, prompting volatile reactions on Wall Street.
