Today's market summary after the U.S. Federal Reserve's decision and Powell's statements.
The U.S. Federal Reserve decided on Thursday to cut interest rates by 25 basis points to 4.75%. Additionally, Fed Chair Jerome Powell made some pessimistic comments, which reinforced expectations that the Federal Open Market Committee could lower interest rates again at its next meeting in December.
The announcement of this decision and Powell's remarks had clear impacts on the main financial assets traded in the market, accompanied by a significant improvement in risk appetite. In terms of trading, the most notable impacts were:
- The U.S. dollar index DXY deepened its losses, falling by about 0.84% to 104.3 points, amid growing speculation of another interest rate cut in December.
- U.S. Treasury yields fell, with the benchmark 10-year bond yield dropping by about 94 basis points to 4.33%.
- The USD/JPY pair decreased by around 1.14% to 152.76 yen.
- The EUR/USD pair extended its gains to 0.7%, trading at 1.0801 dollars.
- U.S. stock indices rallied, achieving new historical highs. The Dow Jones index rose by about 0.14% to 43,823.13 points, marking its highest level ever. The tech-heavy Nasdaq and the S&P 500 also reached new historical peaks at 21,132.80 points and 5,983.84 points, with increases of 1.54% and 0.74% respectively.
- Gold prices extended their early gains to 1.85% in spot markets, trading at $2,710.61 per ounce, while December futures for gold rose by about 1.54% to $2,713.21 per ounce. Meanwhile, spot silver prices increased by around 2.75% to $32.15 per ounce.
- Brent and West Texas Intermediate crude oil trimmed their early gains, trading at levels of $75.39 per barrel and $72.02 per barrel, with limited increases of 0.29% and 0.28% respectively.
- Bitcoin sharply extended its gains, hitting a new all-time high of $76,990, after rising by $1,212.