Reflecting On Last Week
Trump Triumph Sparks Market Boom
U.S. markets rocketed Wednesday in a historic rally following Donald Trump’s decisive presidential victory. Stocks surged in the morning and held gains throughout the day and week, as investors responded to the end of months of political uncertainty. The Dow jumped 1,507 points, marking its first 1,000-point gain since 2022, while the S&P 500 surpassed 6,000 and the Nasdaq reached an unprecedented 21,000, setting new records across major indices. Adding to the optimism, the U.S. dollar posted its strongest performance in two years, reflecting renewed confidence in financial markets. Treasury yields climbed, buoyed by expectations of pro-business policies under Trump’s leadership. The swift election result, avoiding legal battles, cleared a path for strategic corporate adjustments. Trump’s win is expected to simplify business planning, with potential boosts to hiring and investment amid anticipation of business-friendly policies.
Bitcoin Soars to $75K as Trump Pledges “Crypto Capital” Vision
Bitcoin soared to a new all-time high, reaching $75,395 early Wednesday, as investors reacted to President-elect Donald Trump’s victory. Bitcoin trading volume spiked 145% within 24 hours, with the price climbing 8.5% as Trump’s prospects solidified. Trump, who has embraced a pro-crypto stance, has pledged to make the U.S. a “crypto capital,” vowing to ease regulatory pressures and support Bitcoin mining and digital asset rights.(Bank)
Fed Aims for “Soft Landing” with Latest Rate Reduction
The Federal Reserve took a unanimous step to ease monetary policy further, cutting its benchmark rate by 0.25% to a target range of 4.50%-4.75%. This second consecutive rate cut reflects the Fed’s aim to balance inflation management with a growing focus on supporting employment, especially as recent data shows slight softening in the labor market. Chair Jerome Powell described the decision as part of a broader “recalibration” to bring rates closer to neutral, hinting at another potential cut in December as the Fed evaluates its next steps. By adjusting policy at a measured pace, the Fed aims for a “soft landing,” reducing inflationary pressures while avoiding a recession. (CNBC)
The Week Ahead: Events to Watch
This week, U.S. markets are set to center on inflation reports, retail sales, and statements from Federal Reserve officials, as investors gauge how the Fed might steer policy amid Trump’s second presidential term. Key corporate earnings from major players like Home Depot, Cisco, and Walt Disney will also provide insights into economic momentum. Internationally, updates on China’s lending, fixed asset investment, and retail activity will be in focus, while the UK releases data on unemployment, wage trends, and GDP growth. Germany’s economic sentiment index will offer insight into Eurozone sentiment, with GDP updates from Japan, Russia, the Netherlands, and Poland adding global context. Additionally, reports on Australia’s job market and consumer confidence, Mexico’s interest rate decision, and inflation data from India and Russia round out a week packed with pivotal economic indicators worldwide.
Mental Mastery Message of the Week
“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffet
Levels On Our Radar This Week
S&P 500
A monster week wrapped up post-election, with new all-time highs across major indices, and the S&P closing at its record peak on Friday. A huge daily FVG has emerged from this, potentially calling for rebalancing. We’ll be closely watching price action to see if this level provides the support needed for further upward momentum.
XAU/USD (Gold)
Gold has finally offered a retracement with some downward movement this past week. We closed within the middle of a weekly bullish FVG, and we’ll be watching to see if this area supports the next leg up.
EURUSD
The elections took a toll on EUR/USD, with nearly a 2% drop on election night, tapping into the weekly bearish FVG and breaking through the trendline support zone. We’ll be watching to see if it targets the low resistance liquidity in the upcoming week.
