The Dow Jones and the S&P 500 Index moved to record highs, as investors appeared to celebrate new stimulus measures in China. Chemicals and materials stocks were particularly strong. Copper prices also increased. Tech stocks outperformed as well, helped by reports of a possible takeover of Intel and news that NVIDIA’s CEO had ceased sales of his own shares in the company. In addition, chipmaker Micron Technology surged and seemed to provide a general tailwind for the sector following its upbeat outlook for AI demand. Some benign inflation data helped spur an early rally Friday; the Fed’s preferred inflation gauge, the core (less food and energy) personal consumer expenditures (PCE) price index, rose only 0.1% in August, a tick below expectations. On a year-over-year basis, the index climbed only 2.2%, close to the Fed’s 2.0% long-term inflation target and the least since February 2021. The yield on the US 10-year Treasury ended little changed for the week. Chinese stocks surged after Beijing unveiled a slew of measures to shore up the economy. The blue chip CSI 300 soared 15.7%. The STOXX Europe 600 Index rebounded, ending 2.69% higher as evidence of slowing business activity spurred hopes for interest rate cuts. Japan’s stock markets gained over the week, with the Nikkei 225 Index rising 5.6%. Gold rallied for the 3rd straight week, breaking to new record highs (before selling-off on Friday). Bitcoin also rallied the 3rd straight week, breaking above $66,000 on Friday.
Have a great week-end
Charles for the team