WEEKLY SUMMARY: Big week for bullion, bitcoin, black-gold & US big-caps
U.S. equity indexes advanced for the week, rebounding from the prior week’s sell-off. The Nasdaq Composite performed best, closing the week at a record high, followed by the S&P 500 and Russell 2000 indexes. Apple announced that it would invest $100 billion—in addition to a previously announced $500 billion—in developing U.S.-based manufacturing over the next four years, which would reportedly exempt the company from the Trump administration’s steep tariffs on semiconductors. Shares of the iPhone maker closed the week 13.3% higher, helping support the broader indexes. The Trump administration’s new round of global tariffs kicked in on Thursday but the market reaction appeared to be more muted compared with other recent tariff actions. September rate cut probability rose as several Fed officials suggested rate cuts could be in the near future and as President Trump announced that he would nominate Stephen Miran, the current chair of the White House’s Council of Economic Advisors, to temporarily fill a vacancy on the #Fed’s Board of Governors. Some investors viewed this nomination as potentially favoring looser #monetarypolicy. US Treasury yields were up across the curve this week with the short-end underperforming. The dollar extended last Friday's post-payrolls plunge this week. #Oil dropped on hopes of a Russia-Ukraine truce. #Gold futures are up for 5 of the last 6 days, hitting new record. #Bitcoin bounced back but underperformed ether which hit $4,000. European, Chinese and Japanese stocks rose during the week.
Have a great weekend!
Charles for the team
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U.S. stock indexes finished the holiday-shortened week higher, boosted by dovish comments from some Fed officials and several weaker-than-expected economic reports that seemed to reinforce the idea that a December rate cut remains on track. Small-cap stocks outperformed their large-cap peers, as the Russell 2000 Index advanced 5.5%. The Nasdaq Composite also posted strong returns, rebounding from the prior week’s sell-off as concerns regarding elevated valuations and spending on AI appeared to take a back seat to optimism around the growth potential from the technology. In economic news, U.S. retail sales increased by 0.2% in September (below +0.4% estimates). September PPI rose 0.3% in September, in line with estimates.


