Most major U.S. stock indexes finished the week higher ahead of the Fed September 16–17 monetary policy meeting, at which the central bank is widely expected to lower short-term interest rates. Enthusiasm surrounding the ongoing AI boom—supported by Oracle’s announcement of a substantial guidance increase amid several large new AI deals—also helped lift major indexes. The Dow, S&P 500, and Nasdaq all notched new record highs during the week, although the Dow and S&P 500 both pulled back modestly in a relatively quiet trading session on Friday. The Russell 2000 Index also advanced, logging its sixth straight week of gains. On the macro side, US August inflation remains elevated but is seen as unlikely to derail rate cuts. Initial jobless claims for the week ended September 6 totaled 263,000—the highest level since October 2021. Meanwhile, the BLS released U.S. payroll revisions for the one-year period ended March 2025, showing that 911,000 fewer jobs were created compared with initial estimates. US Treasuries were mixed, the dollar weakened while Gold rallied for the 4th straight week. Bitcoin is back at $116k, a 3-year high. In Europe, the STOXX Europe 600 Index ended 1.03% higher amid expectations that the U.S. Federal Reserve is poised to lower interest rates. In Asia, Mainland Chinese stock markets rose as bullish sentiment among retail investors persisted. Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 4.07% and the broader TOPIX up 1.78%.
Have a great week-end
Charles for the team