Federal Reserve

Key events: Eurozone - ECB's De Guindos Speaks Eurozone - ECB's Lane Speaks Eurozone - ECB President Lagarde Speaks The S&P 500 wrapped up the week with a notable loss on Friday, as optimism from the post-election rally faded in light of stronger-than-expected economic data. These developments raised concerns over the likelihood of fewer interest rate cuts by the Federal Reserve. The Dow Jones Industrial Average declined by 305 points (0.7%), the S&P 500 fell 1.4%, and the tech-heavy NASDAQ Composite slid 2.3%.

Key events: Australia - RBA Interest Rate Decision (Nov) USA - US Presidential Election USA - S&P Global Services PMI (Oct) USA - ISM Non-Manufacturing PMI (Oct) USA - ISM Non-Manufacturing Prices (Oct) USA - 10-Year Note Auction As the week kicked off, US markets took a cautious stance, with the S&P 500 ending Monday in the red. Investors are bracing for two major events: the presidential election on Tuesday and the Federal Reserve’s upcoming rate decision.

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Key events: China - Manufacturing PMI (Sep) UK - GDP (QoQ) (Q2) UK - GDP (YoY) (Q2) USA - Chicago PMI (Sep) USA - Fed Chair Powell Speaks On Friday, the Dow Jones Industrial Average reached record highs, closing with a gain of 137 points (0.3%) at 42,313.00. Energy stocks surged, and signs of faster-than-expected cooling inflation buoyed investor sentiment. In contrast, the S&P 500 dipped by 0.2%, and the Nasdaq Composite, heavily concentrated with tech stocks, fell 0.4%.

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Key events: Eurozone - Deposit Facility Rate (Sep) Eurozone - ECB Interest Rate Decision (Sep) USA - Initial Jobless Claims USA - PPI (MoM) (Aug) Eurozone - ECB Press Conference USA - 30-Year Bond Auction The S&P 500 trimmed its losses on Wednesday, as a tech rally led by Nvidia helped offset declining expectations for a large interest rate cut by the Federal Reserve next week. This came after data showed a slight increase in core inflation last month.

The Dow surged on Friday, marking its fourth consecutive weekly gain, buoyed by strong corporate earnings and data indicating cooling inflation, which fueled optimism for an upcoming interest rate cut. The Dow Jones Industrial Average climbed 654 points, or 1.6%. Both the S&P 500 and NASDAQ Composite rose 1.1%, though the latter two indexes recorded their first back-to-back weekly losses since April.

In the intricate dance of economic management within the United States, the Federal Reserve System, affectionately known as the Fed, holds center stage. Charged with overseeing the nation's financial stability, the Fed's mandates span from fostering robust employment to steering sustainable economic growth. Its influence, wielded through a spectrum of policies, encompasses the ebb and flow of monetary currents, leaving indelible marks on various economic facets.

Key events: USA - PPI (MoM) (Jun) Canada - Building Permits (MoM) (May) USA - Michigan Consumer Sentiment US stocks fell on Thursday despite inflation data suggesting a slowdown in the US economy, which raised the possibility of Federal Reserve interest rate cuts later this year.

Key events: UK - GDP (QoQ) (Q1) USA - Core PCE Price Index (YoY) (May) USA - Core PCE Price Index (MoM) (May) USA - Chicago PMI (Jun) The S&P 500 managed a slight gain on Thursday as investors balanced a decline in chipmaker Micron against gains in consumer stocks, just ahead of key inflation data. The Dow Jones Industrial Average increased by 36 points, or 0.1%, the S&P 500 added 0.1%, and the NASDAQ Composite rose by 0.30%.