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Asian stocks have enjoyed a positive lead following strong performances by chipmakers in the U.S. markets which have contributed to the S&P 500 reaching record highs. However, amidst this backdrop of market optimism, President Trump’s tariff threats loom large. The proposed tariffs of up to 25% on cars, semiconductors, and pharmaceuticals may introduce volatility in Asian markets.
Current data has shown that the cash levels among investors have fallen to their lowest since 2010, indicating a willingness to take on risk. Yet, the Federal Reserve has indicated a cautious approach to monetary policy, with Fed officials, including Mary Daly of San Francisco, emphasizing the need for restrictive policies until inflation shows more pronounced signs of progress.