Month: November 2024

US stocks initially surged following Trump’s election victory, but have since retreated, giving up most of those gains. The market’s optimism about pro-business policies has been tempered by concerns over potential inflationary effects and slower-than-expected interest rate cuts. Federal Reserve Chair Jerome Powell’s comments suggesting a cautious approach to rate reductions, coupled with strong retail sales data, have led investors to reassess their expectations for monetary policy easing.

U.S. stock markets experienced their best week in a year, with the S&P 500 touching 6,000 following a Republican sweep in the elections which also caused reverberations in capital markets across the globe. The Fed continued its easing cycle. On the other side of the world, Beijing announced their much-awaited fiscal spending plan to revive a subdued economy.

US October jobs data came in well below expectations, but analysts attributed the slowdown to one-off events. Market remains convinced about a 25 bp cut by the FOMC on November 7th, while concerns about higher inflation and debt pushed 10y US Treasury yields higher. September corporate earnings were generally positive, but market reaction was mixed due to concerns around high AI spends.