"he S&P 500 (US500) is currently trading around 6,750 points, near its all-time high, reflecting a strong recovery in the U.S. stock market after the early-October correction. The main driver of this rally comes from an improving macroeconomic backdrop and a notable shift in investor sentiment, as concerns over trade and interest rates have temporarily eased. The first positive factor stems from U.S. trade policy."
"Alongside trade developments, Federal Reserve policy remains a key focus. The Fed is currently maintaining interest rates within the 4.00%-4.25% range, while Chair Jerome Powell suggested that the ongoing quantitative tightening (QT) program is "nearing its end." The market has begun to price in that the rate-hike cycle has likely peaked, which has eased valuation pressure on high-growth stocks. Meanwhile, the 10-year Treasury yield has stabilized around 4.3%, down from the 4.6% peak seen in September, helping to contain borrowing costs and support equity valuations."
"Another noteworthy element comes from the commodity markets, particularly gold. In just the past day, gold prices have dropped nearly $400/oz, from their record high near $4,380/oz to around $4,000/oz. Beyond profit-taking after an extended rally, this sharp correction reflects a weakening in safe-haven demand - a signal that global risk appetite is improving. As investors scale back exposure to safe assets, capital tends to rotate back into riskier instrum"
he S&P 500 (US500) is trading around 6,750 points, near its all-time high, following a recovery from the early-October correction. The rally is driven by an improving macroeconomic backdrop and a shift in investor sentiment as trade and interest-rate concerns have eased. President Trump's remarks that proposed 100% tariffs on Chinese imports “would not be sustainable” and willingness to meet President Xi reduced trade-war fears and prompted capital flows into technology, industrial, and financial sectors that constitute over 60% of the index's weight. The Fed holds rates at 4.00%-4.25% and QT is nearing its end, while gold's sharp drop signals weaker safe-haven demand and rotation into riskier assets.
Read at London Business News | Londonlovesbusiness.com
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