This week, global asset prices experienced significant fluctuations due to the Federal Reserve's interest rate cuts. U.S. stocks surged, with the Dow Jones, S&P 500, and Nasdaq achieving record highs. Notably, the S&P 500 and Dow Jones had their best weekly performances in a year. Meanwhile, European major stock indices declined, and the U.S. dollar index rose for the sixth consecutive week. Commodity prices saw mixed results with oil prices increasing, while precious metals decreased, with COMEX gold futures dropping over 2%.
Among notable stock movements, the "Big Tech" companies saw substantial gains. Tesla (TSLA, Financial) led the surge with a 29% increase, pushing its market capitalization back above $1 trillion. This highlights the company's remarkable recovery and underscores investor confidence. NVIDIA's market value reached $3.6 trillion, marking it as the first company to surpass this milestone. Collectively, the "Big Tech" stocks added approximately $934.6 billion to their market caps.
A focus remains on the Federal Reserve's future monetary policy direction as it impacts global financial markets. The recent 25 basis point rate cut was in line with expectations, although there are indications the Fed may pause rate cuts in December. Analysts speculate that the Fed's decisions will closely follow economic indicators and potential changes driven by U.S. election results.
In particular, Tesla (TSLA, Financial) showcased impressive gains, significantly outpacing other technology stocks. NVIDIA and Amazon followed with notable increases, reflecting strong investor sentiment in the tech sector amidst broader market volatility.
