Analysts: The U.S. economy is solid, and only one interest rate cut is expected this year

Matthias Scheiber, head of the multi-asset team at Allspring Global Investments, said US fiscal policy remained accommodative, adding fuel to the fire with the passage of Mr. Trump's Big Beautiful Act, which is expected to contribute up to 1 percentage point to US growth in its first year, after which the marginal effect will gradually diminish. From a macro perspective, the US economy remains solid: unemployment remains stable, real wages continue to rise, and corporate earnings performance is resilient. Barring a major labour market shock or renewed concerns about Fed independence, we expect the Fed to maintain a wait-and-see stance, with a possible rate cut this year. Much will depend on the trade-off between inflation and growth.