Last week, the "Trump deal" set off a climax in the market. Trump's return to the White House and the Republican Party's possible victory in Congress, while the Federal Reserve cut interest rates by 25 basis points as expected, settled the dust on two key risk events and promoted a significant rebound in the financial market.
According to 4E monitoring, the US stock market has risen rapidly, with the three major indexes hitting new highs last week. The Dow Jones and S&P 500 recorded their best single-week performance of the year. Among them, the S&P 500 rose 4.66% for the week, the Dow Jones rose 4.61%, and the Nasdaq rose 5.74%. Tesla soared to a new high since April 2022, with a weekly increase of 29.01%, and a market value of over one trillion US dollars. Nvidia once surpassed Apple and became the world's most valuable company again, with a weekly increase of 9.03%. The total market value of the seven technology giants increased by nearly US$940 billion in a week.
Benefiting from Trump's support for cryptocurrencies and the prospect of Congress supporting cryptocurrencies, Bitcoin broke through the $80,000 mark, setting a new record high. As of press time, it was $81,635, up more than 18% in 7 days. Ethereum was at $3,207, up more than 30% in 7 days. Altcoins collectively exploded, with gains generally exceeding the overall market, boosting market sentiment.
In terms of foreign exchange, the US dollar index rose last week, with a total weekly increase of 0.6%, rising for six consecutive weeks, and non-US currencies were generally under pressure. Oil prices fluctuated greatly this week. At the beginning of the week, OPEC+ issued a statement to postpone production increase again, and oil prices rose sharply. However, the US EIA crude oil supply hit a new high since August, dragging down the weekly oil price increase. Brent crude oil rose 1.09% for the week. Spot gold fell 1.85% for the week due to the strengthening of the US dollar and the Federal Reserve's hint that it was open to suspending interest rate cuts.
As the US election comes to an end, investors will turn back to the outlook for monetary policy and corporate earnings, and continue to assess the impact of Trump's policy expectations. This week, many Fed officials will deliver speeches, and the latest US CPI, PPI and retail sales data will become an important reference for investors to judge the health of the US economy and the extent of the Fed's interest rate cuts in 2025.
