U.S. stock indexes ended the week lower, weighed down by hawkish comments from Federal Reserve officials that tempered investor optimism regarding the pace of future rate cuts. Chair Jerome Powell highlighted a “challenging situation” for the economy, noting persistent inflation risks and growing concerns about the labour market.
European markets finished little changed. The eurozone economy maintained steady growth in the third quarter, led by the fastest expansion in services activity this year, while manufacturing output grew at a slower pace.
Japan’s stock markets rose amid softened expectations for a BoJ rate hike after weaker Tokyo inflation data. Meanwhile, strong domestic liquidity fueled further gains in China’s markets since April, as investors seek higher returns amid low interest rates and limited alternatives.
Last week’s PCE inflation report, the Fed’s preferred gauge, showed headline inflation at 2.7% year-over-year and core inflation at 2.9% for August - both matching forecasts. While inflation remains above the Fed’s 2% target and has edged up in recent months, these readings are still below the Fed’s latest estimates for 2025. The data keeps the prospect of further rate cuts on the table, as policymakers balance elevated prices with their projections and goals.
Index |
Current Price |
1 Week Return % |
S&P 500 |
6,643.70 |
-0.31% |
DJIA |
46,247.29 |
-0.15% |
Nasdaq |
22,484.07 |
-0.65% |
Nikkei 225 |
45,354.99 |
0.25% |
FTSE 100 |
9,284.83 |
0.74% |
Shanghai Composite |
3,828.11 |
0.21% |
Sensex |
80,426.46 |
-2.66% |
ADX Index |
9,999.82 |
-1.79% |
Gold |
3,809.00 |
2.35% |
Brent Oil (Brent) |
69.22 |
3.81% |
The combination of falling interest rates and tax cuts signals a supportive shift in both monetary and fiscal policy over the next 12 months, which we believe should help lift U.S. economic growth. In this environment, we continue to favour U.S. large- and mid-cap stocks — exceptionally high-quality and cyclical names that stand to benefit from lower borrowing costs and a broader market leadership beyond mega-cap technology. At the same time, sectors such as consumer discretionary, financials, and health care could also present attractive opportunities.
Let our investment specialists help you tailor your portfolio for what’s ahead.
Disclaimer
This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.
