U.S. stocks ended the week mixed. The Dow and S&P 500 saw slight gains, while the Nasdaq, S&P MidCap 400, and Russell 2000 declined. Through most of the week, markets fell as investors rotated out of high-growth and AI-related stocks due to valuation concerns. A volatile Friday helped some indexes recover. The longest U.S. government shutdown ended Wednesday after President Trump signed a temporary funding bill. Although this removed a key market headwind, stocks still dropped Thursday as uncertainty remained about the return to normal operations. Economic data releases became a focal point, with the BLS delaying some reports but confirming the September jobs report will come out on November 20. Comments from multiple Fed officials signaled caution and a preference to keep policy restrictive due to lingering inflation risks. As a result, expectations for a December rate cut fell sharply—from 95% a month ago to about 41%. Treasury yields moved slightly higher, leading to modestly negative returns for U.S. government bonds. In Europe, the STOXX Europe 600 Index ended 1.77% higher. Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 0.20% and the broader TOPIX Index up 1.85%. In China, the CSI 300 Index fell 1.08%. In Hong Kong, the Hang Seng Index added 1.26%. The dollar is down for the 2nd week in a row (but only marginally), Gold managed to rise 2% this week. Bitcoin traded down to $94,000 - its lowest level in six months.
Have a great weekend
Charles & Syz Research Lab