Overview

• The Federal Reserve's significant rate cut of 50 basis points has driven U.S. stock indexes to record highs, with the S&P 500 and Nasdaq both up 20% for the year.
• Despite expectations, the People's Bank of China and the Bank of Japan held their interest rates unchanged, leading to currency fluctuations with the yuan strengthening and the yen weakening.
• European markets saw mixed reactions with the Bank of England also holding rates steady, influenced by the upcoming Labour government's budget and mixed economic indicators.
• Fed Chairman Jerome Powell emphasized that the rate cut is a precautionary measure rather than an emergency response, indicating further cuts may be on the horizon depending on economic data.
• Commodity markets remained strong, with gold reaching a record high and oil prices seeing a second consecutive week of gains.