U.S. Economic Resilience
Recent data, particularly the non-farm payrolls and ISM Services index, surprised to the upside. This strength has effectively dispelled immediate recession fears but has also led markets to scale back expectations for aggressive interest rate cuts in the near term.

Shift in Federal Reserve Expectations
The "higher-for-longer" narrative has regained momentum. Strong labor market data and persistent inflation concerns suggest the Fed may remain patient before initiating a cutting cycle. Markets are now pricing in fewer cuts than previously anticipated at the start of the year.

Global Market Performance
Equities: U.S. indices showed volatility as they digested higher yields. Gold reached record highs, serving as a hedge against geopolitical risks and inflationary uncertainty.
Asia: The region continues to navigate its own recovery path, with a close eye on U.S. dollar strength and its impact on local currency stability.

Fixed Income and Yield Dynamics
Treasury yields have climbed in response to the robust economic data. The 10-year yield remains a focal point for investors as it prices in a "no-landing" or "soft-landing" scenario for the American economy.

Strategic Outlook
In this environment, XinXi maintains a balanced approach. We emphasize the importance of high-quality credit and selective equity positioning, as the "last mile" of the disinflationary process proves to be the most challenging for central banks.