This Week
On Friday PCE Price Index data for September, the Fed’s preferred inflation indicator, will be published. Fed Chair Jerome Powell will also give a speech on Tuesday. In geopolitics, markets will be watching for Russia–Ukraine developments and watching closely following weekend reports that the US could be preparing for military action against Venezuela. On Sunday, OPEC+ met and decided to maintain production at current levels, providing a boost to oil prices in early trading on Monday.
Stocks
APPLE
Apple’s price rallied 2.96% as the stock leapt to an all-time peak on Tuesday with optimism that demand for its most popular products, such as the iPhone 17, is expected to rise over the holiday season / black Friday period. In recent weeks, the underperforming Apple stock (compared to its AI-linked rivals) has been reassessed by investment banks after high iPhone sales and positive earnings were reported. Last week’s rotation back into tech stocks and general positive sentiment were other price drivers.
Walmart
Walmart’s stock price surged 4.8% to close at a record high on Friday, with the retailer reportedly seeing a lot of interest amid the holiday season. At the end of the previous week, Walmart raised its sales forecast for the year, and analysts have reported that the company has improved its integration between its in-store and online sales, which could provide an additional boost in revenue in the longer term.
Commodities
Crude Oil
Crude oil prices increased 1.2% as risk-on sentiment returned to the markets following hopes that the US (and global) economy and oil demand will stay strong in the coming weeks. Oil prices were also trading higher on expectations that OPEC+ will break from previous months’ increases and instead keep production at current levels.
Gold
Gold prices jumped 3.53% and reached a two-week high after the markets interpreted the latest mixed US data as being able to provide room for the Fed to cut rates in December. In geopolitics, a new US peace plan was broadly accepted by Ukraine, but Russia expressed mixed signals after the 28-point plan was reportedly modified to a 19-point plan.
COPPER
Copper prices climbed 3.57% to test a record high amid a weaker dollar and ongoing supply disruptions. Reports suggested that lower output in October from a top producer in Chile was a major catalyst, while planned production cuts from Chinese smelters provided further support. Longer-term demand due to electrification and clean energy investment has also kept the market tight. Inventory withdrawals of copper stocks have also declined this year, with analysts affirming that the outlook remains strong.
EUR/USD
The EUR/USD gained 0.81% by the end of the week as the greenback weakened against a basket of other currencies, as expectations rose of a Fed interest rate cut in December. Risk-on sentiment also encouraged market participants to move away from the safe-haven dollar. In the Eurozone, mixed economic data confirmed the likelihood of no ECB interest rate cuts in the near future.
Recap
Last week, the S&P 500 climbed 3.7%, the Nasdaq jumped 4.9% and the Dow Jones rose 3.2%.
US stock indices surged after broadly weaker-than-expected US data increased expectations of Fed rate cuts, which triggered silver prices to jump to record highs. In geopolitics, the US continued its efforts to push Ukraine and Russia towards a peace deal, as US Special Envoy Witkoff headed to Moscow for talks with Russian President Putin. Technical issues at the CME Group exchange caused trading disruptions and additional volatility on Friday.
Crude oil prices grew while natural gas prices soared to multi-month highs amid increases for most commodities last week. Gold prices jumped, while silver prices surged to an all-time high on optimism over a December Fed rate cut. Platinum and Palladium prices climbed in a strong week for both metals.