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Global markets see positive shifts after Fed’s decision to implement rate cut
(MENAFN) Global markets are experiencing a positive shift following the U.S. Federal Reserve's decision to implement a 50-basis-point rate cut on Wednesday, marking its first reduction in four years. This significant move has not only signaled a potential further cut of the same magnitude by the end of the year but has also fostered a sense of optimism among investors. As signs of the U.S. Economy indicating a possible avoidance of recession emerge, risk appetite among market participants is notably increasing.
Last week, U.S. jobless claims fell below expectations, recorded at 219,000, while the current account deficit saw a substantial rise of 10.7 percent to reach USD266.8 billion in the second quarter. These economic indicators have contributed to the overall market buoyancy. The technology sector has been particularly strong, with notable gains in major tech stocks. Nvidia and AMD saw increases of 3.9 percent and 5.7 percent, respectively, while other tech giants like Apple, Meta, Microsoft, and Alphabet also posted significant rises, further propelling market enthusiasm.
In terms of financial metrics, the U.S. 10-Year Treasury yields stood at 3.71 percent, and the U.S. Dollar Index Futures were relatively stable at 100.4 on Friday. Brent crude oil prices climbed by 2.4 percent on Thursday, reaching USD74 a barrel, before experiencing a slight decline of 0.2 percent on Friday. Additionally, gold prices showed a modest increase, closing at USD2,587 an ounce before rising to USD2,594 on Friday.
While U.S. index futures opened with a slight negative trend, the preceding day witnessed robust performance across major indices. The Dow Jones Industrial Average rose by 1.26 percent, the S&P 500 climbed by 1.70 percent, and the Nasdaq experienced a notable jump of 2.51 percent. This positive momentum reflects a broader investor confidence in the potential for economic stability amidst the recent monetary policy adjustments.
Last week, U.S. jobless claims fell below expectations, recorded at 219,000, while the current account deficit saw a substantial rise of 10.7 percent to reach USD266.8 billion in the second quarter. These economic indicators have contributed to the overall market buoyancy. The technology sector has been particularly strong, with notable gains in major tech stocks. Nvidia and AMD saw increases of 3.9 percent and 5.7 percent, respectively, while other tech giants like Apple, Meta, Microsoft, and Alphabet also posted significant rises, further propelling market enthusiasm.
In terms of financial metrics, the U.S. 10-Year Treasury yields stood at 3.71 percent, and the U.S. Dollar Index Futures were relatively stable at 100.4 on Friday. Brent crude oil prices climbed by 2.4 percent on Thursday, reaching USD74 a barrel, before experiencing a slight decline of 0.2 percent on Friday. Additionally, gold prices showed a modest increase, closing at USD2,587 an ounce before rising to USD2,594 on Friday.
While U.S. index futures opened with a slight negative trend, the preceding day witnessed robust performance across major indices. The Dow Jones Industrial Average rose by 1.26 percent, the S&P 500 climbed by 1.70 percent, and the Nasdaq experienced a notable jump of 2.51 percent. This positive momentum reflects a broader investor confidence in the potential for economic stability amidst the recent monetary policy adjustments.
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