Global markets experienced a significant surge on Friday, November 8, fueled by a confluence of positive factors. The U.S. stock market led the charge, with the S&P 500 briefly breaching the 6,000 mark and recording its most substantial weekly gain in a year. This remarkable rally was driven by Donald Trump’s re-election victory, igniting expectations of pro-business policies and a favorable economic outlook. Further bolstering investor sentiment was the recent Fed rate cut, signaling a continuation of accommodative monetary policy. The anticipated Republican sweep in Congress further solidified this optimism, propelling the Nasdaq to record highs and securing the S&P 500’s 50th record close of the year.
Economic data released on Friday also painted a positive picture. The University of Michigan’s consumer sentiment index climbed to 73 in November, marking its highest level in seven months. This figure outpaced both October’s reading of 70.5 and market expectations of 71, indicating a healthy consumer outlook.
Across most sectors of the S&P 500, gains were widespread, with consumer staples, utilities, and real estate leading the charge. Materials and communication services, however, lagged behind. The Dow Jones Industrial Average closed at 43,988.99, up 0.59%, while the S&P 500 rose 0.38% to 5,995.54. The Nasdaq Composite gained 0.09% to finish at 19,286.78.
The bullish sentiment reverberated through Asian markets on Monday. Japan’s Nikkei 225 gained 0.18% and ended the session at 39,539.50, propelled by gains in the Shipbuilding, Railway & Bus, and Services sectors. Australia’s S&P/ASX 200, however, fell 0.35% to close at 8,266.20, with losses in the Metals & Mining, Resources, and Materials sectors driving the decline. In India, the Nifty 50 traded lower by 0.11% at 24,122.10, while the Nifty 500 was down 0.32% at 22,572.70. China’s Shanghai Composite rose 0.51% to close at 3,470.07, and the Shenzhen CSI 300 gained 0.66% to finish the day at 4,131.13. However, Hong Kong’s Hang Seng fell 1.45% to close the session at 20,426.93.
European markets opened on a positive note, buoyed by Wall Street’s record highs and the recent Fed rate cut. The European STOXX 50 index was up 1.24%, with Germany’s DAX gaining 1.37% and France’s CAC rising 1.20%. The U.K.’s FTSE 100 index also traded higher by 0.90%. While optimism prevailed, political uncertainties lingered, with Trump’s re-election and instability within Germany’s coalition government casting shadows over the horizon.
Commodities witnessed mixed performance. Crude Oil WTI was trading lower by 1.06% at $69.31/bbl, and Brent was down 1.29% at $72.92/bbl. Concerns over U.S. storm disruptions eased, but China’s stimulus plan fell short of investor expectations, leading to subdued oil prices. Weak demand growth in China and anticipation of increased U.S. output under Trump’s administration further weighed on the market outlook. Natural Gas gained 6.18% to $2.834. Gold was trading lower by 0.71% at $2,675.60, while Silver rose 0.36% to $31.562. Copper slipped 0.24% to $4.2945.
In the forex market, the U.S. dollar index increased by 0.26% to 105.27, continuing its gains from Trump’s election win, which raised expectations of inflationary policies and slower Fed rate cuts. The USD/JPY rose by 0.73% to 153.75, and the USD/AUD rose by 0.01% to 1.5180. Despite a recent rate reduction, the dollar maintained most of its gains, with the focus shifting to upcoming inflation data.
