Prime Highlights:
- Gold prices surged past $4,000 per ounce, reflecting continued investor demand amid economic uncertainty.
- S. stocks remained near record highs, with the S&P 500, Dow Jones, and Nasdaq showing modest gains.
Key Facts:
- The Federal Reserve’s upcoming meeting minutes are highly anticipated, with economists expecting at least one more rate cut this year.
- European and Asian markets showed mixed movements, while the U.S. dollar strengthened against the euro and yen due to political developments.
Key Background:
U.S. stocks edged higher on Wednesday, following a modest pullback after a seven-day winning streak, while gold prices continued their climb past $4,000 per ounce. The S&P 500 rose 0.2% in early trading, approaching its all-time high set earlier this week. The Dow Jones Industrial Average gained 51 points, and the Nasdaq composite added 0.4%.
Investor attention has shifted toward gold, which traded at $4,057.50 per ounce, up nearly $53 or 1.3% from Tuesday. Traditionally viewed as a hedge against inflation, gold has surged more than 50% this year amid government debt concerns, political uncertainties, and expectations that the Federal Reserve may continue cutting interest rates after September’s initial reduction.
The minutes from the Fed’s September meeting, due for release later Wednesday, are highly anticipated by analysts seeking clues on potential further rate cuts. Most economists forecast at least one more reduction this year as the central bank balances a softening labor market with inflation above its 2% target.
Corporate news included a strong gain for AST SpaceMobile after Verizon Communications announced it would utilize the company’s satellite network to provide cellular service when needed, starting next year. Equifax also climbed 2.5% after lowering the price of its mortgage credit score product by more than half, undercutting competitor Fair Isaac.
Despite gains in some sectors, caution surrounds technology stocks. The Bank of England warned of heightened risk for AI-focused companies, noting that equity valuations appear stretched and could face sudden corrections if growth expectations falter. This has been a good year in chip and technology firms, with Nvidia, Oracle, and Palantir recording good returns.
Europe had a positive market with the rise of CAC 40, DAX, and FTSE 100, and the U.S dollar performed well over the euro and the yen because of the political developments in France and Japan. In Asia, Tokyo’s Nikkei 225 slipped 0.5%, while Hong Kong and Taiwan experienced minor declines.
In commodities, crude oil prices rose, with U.S. benchmark crude up 1.3% to $62.54 per barrel and Brent crude rising to $66.24 per barrel.
Markets are near record highs, but investors are watching inflation, central bank actions, and tech stock values for possible risks.
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