Global markets experienced a wave of optimism on Thursday, September 12, driven by growing expectations for a Federal Reserve rate cut. The prospect of lower interest rates fueled a surge in U.S. equities, particularly in the technology sector, lifting the Nasdaq Composite to new heights. While the S&P 500 closed higher overall, a weak revenue forecast from Moderna dampened the index’s gains. Adding to the positive sentiment, the European Central Bank also announced a rate cut, further suggesting a global shift towards easing monetary policy.
Economic data released on Thursday offered further insight into the current market landscape. U.S. producer prices rose 0.2% in August, exceeding market expectations, while initial jobless claims rose slightly to 230,000 for the week ending September 7. Despite these mixed signals, all 11 sectors of the S&P 500 closed in positive territory, with communication services leading the charge. Energy and consumer discretionary stocks also witnessed significant gains.
The Dow Jones Industrial Average finished the day up 0.58% at 41,096.77, while the S&P 500 closed 0.75% higher at 5,595.76. The Nasdaq Composite ended the session with a 1.00% gain, reaching 17,569.68.
On Friday, Asian markets presented a mixed bag. Japan’s Nikkei 225 closed lower by 0.78% at 36,568.00, weighed down by losses in the marine transport, food, and transportation equipment sectors. In contrast, Australia’s S&P/ASX 200 gained 0.30%, ending the session at 8,099.90, boosted by gains in the gold, metals & mining, and materials sectors. India’s Nifty 50 slipped 0.10% to 25,363.55, while the Nifty 500 rose 0.17% to 23,948.05. China’s Shanghai Composite closed 0.48% lower at 2,704.09, and the Shenzhen CSI fell 0.42%, finishing at 3,159.25. Hong Kong’s Hang Seng bucked the trend, ending the session higher by 0.75% at 17,369.09.
In the eurozone, the European STOXX 50 index gained 0.30%. Germany’s DAX rose 0.49%, France’s CAC climbed 0.34%, and the UK’s FTSE 100 index traded higher by 0.12%.
Commodities markets experienced a surge in activity on Friday. Crude oil prices rallied, with WTI trading 1.13% higher at $69.75/bbl and Brent up 0.99% at $72.66/bbl. The surge in oil prices was attributed to production disruptions in the U.S. Gulf of Mexico due to Hurricane Francine. A weaker U.S. dollar and existing supply issues further fueled the gains. Natural gas rose 1.02% to $2.381.
Gold prices soared to a record high, driven by the growing expectation of a larger Federal Reserve rate cut. The precious metal gained 0.75% to $2,599.90. Silver also rose, gaining 1.29% to $30.495, and copper increased 0.56% to $4.2185.
U.S. futures markets traded higher on Friday morning, with Dow futures up 0.14%, S&P 500 futures rising 0.19%, and Nasdaq 100 futures gaining 0.08%.
The U.S. Dollar Index fell 0.41% to 100.95, reflecting the increasing anticipation of a more aggressive rate cut by the Federal Reserve. USD/JPY declined 0.98% to 140.40, and USD/AUD dropped 0.07% to 1.4863. The dollar’s weakness against the yen was further amplified by hawkish comments from Bank of Japan officials, which bolstered the yen’s value.
