Key Takeaways:
Dollar Index rose 0.1% after Fed interest rate cut
GBP/USD increased 0.3% ahead of Bank of England meeting
The Eurozone inflation is not as low as the ECB would like, prompting interest rates to stay high
Investors positioned for no changes in interest rates in Japan after a scheduled BOJ meeting
USD/CNY traded lower, awaiting key rate decision by China’s central bank- Major stock indexes closed with modest losses following the rate cut announcement
Fed Chair Jerome Powell expressed confidence in the economy and hinted at more rate cuts in the future
Tech sector experienced a sharp drop in US stock markets
Tech sector recovered after earnings release from key companies
Recovery wave seen on Friday likely to extend next week
Meta Platforms expecting higher expenses in 2024 and 2025
Nvidia trading at historic highs in stock market
Relevant Key Takeaways:
- The U.S. dollar bounced back after a significant interest rate cut by the Federal Reserve
- Sterling gained ahead of the Bank of England’s policy-setting meeting
- USD/JPY rose ahead of BOJ meeting, no expected changes
- The benchmark S&P 500 initially rose before closing down 0.29%
- The dollar index weakened initially but then rose to 100.98
- Yields on 2-year and 10-year U.S. Treasuries rose after the rate cut
Alphabet saw an increase in CapEx, exceeding forecasts
Nvidia and AI stocks gained upside due to increased CapEx
Nvidia staged a 5% rally on Friday despite recent declines
Article:
The global financial markets saw various shifts and updates in response to key events and announcements last week. The Dollar Index rose slightly following a Federal Reserve interest rate cut, while GBP/USD also saw an increase ahead of the Bank of England meeting. Meanwhile, in the Eurozone, inflation rates remained higher than desired by the European Central Bank, influencing interest rate decisions.
Investor sentiment was cautiously optimistic in Japan, with expectations of no changes in interest rates after the scheduled Bank of Japan meeting. Additionally, the tech sector in the US experienced fluctuations, with a sharp drop initially followed by a recovery after earnings releases from major companies.
Fed Chair Jerome Powell expressed confidence in the economy, hinting at potential future rate cuts. Major stock indexes closed with modest losses after the rate cut announcement, but there were positive movements in key tech companies like Nvidia, which traded at historic highs. Looking ahead, the markets are anticipating further developments and potential extensions of the recovery wave seen on Friday.