News

Explore the latest updates, news, and insights on trading, finance, and more in the nomo Updates category. Stay informed about market trends, product features, and valuable tips to enhance your trading experience!

Updates | nomo Blog

Updates

<p>This week’s market action was shaped by global geopolitical tensions and a stable U.S. labor market. The dollar (<a href="https://nomotrade.com/en/trading/markets/forex/EURUSD">$EURUSD</a>) surged to its highest weekly gain since April amid safe-haven demand, while oil prices (<a href="https://nomotrade.com/en/trading/markets/commodities/BRNUSD">$BRNUSD</a>,&nbsp;<a href="https://nomotrade.com/en/trading/markets/commodities/WTIUSD">$WTIUSD</a>) rallied on concerns over potential disruptions in Middle East supply chains.</p><p>Meanwhile, Nvidia (<a href="https://nomotrade.com/en/trading/markets/stocks/NVDA">$NVDA</a>) saw its stock jump 5% as the company reported “insane” demand for its next-gen chips. In contrast, the Dow (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>) led losses on Wall Street as investors braced for the upcoming jobs report. Bitcoin miners also faced a tough month, with revenue hitting a yearly low.</p><p>Catch the full rundown of these developments and more in our latest report!</p><figure class="image"><img src="/uploads/Visual_Weekly_financial_markets_roundup_September_30_October_4_01ddafe04e.jpeg"></figure><h2>Dollar eyes biggest weekly gain since April amid market jitters 💵</h2><p>The dollar (<a href="https://nomotrade.com/en/trading/markets/forex/EURUSD">$EURUSD</a>) is on track for its largest weekly surge since April, driven by safe-haven demand amid escalating Middle East tensions and a stable U.S. labor market.</p><p>Recent data showed a slight uptick in unemployment claims, signaling a steady labor environment. Economists expect the upcoming non-farm payrolls report to show 140,000 new jobs, with the unemployment rate holding at 4.2%. This could further reinforce the Federal Reserve’s position on interest rates.</p><p>The dollar index, which measures the greenback against six major currencies, is up 1.5% this week, reaching a six-week high of 102.09, reflecting investor confidence in the U.S. economy despite global uncertainties.</p><h2>Oil at $100 a barrel? Traders hedge amid Middle East tensions 🛢️</h2><p>Oil prices (<a href="https://nomotrade.com/en/trading/markets/commodities/BRNUSD">$BRNUSD</a>,&nbsp;<a href="https://nomotrade.com/en/trading/markets/commodities/WTIUSD">$WTIUSD</a>) surged following President Biden's comments on potential Israeli strikes on Iran’s oil facilities, fueling market fears of a supply disruption.</p><p>TP ICAP energy analyst Scott Shelton noted increased buying of $100 oil call options, suggesting traders are hedging against a potential price spike. While options activity hit record levels, Shelton emphasized it’s more about managing risks than expecting prices to actually reach $100 per barrel.</p><p>Shelton pointed out that there’s ample spare capacity, with Saudi Arabia holding around 3 million barrels and the UAE and Iran each contributing 1.5 million barrels daily, making $100 oil more of a fear-driven possibility rather than an imminent scenario.</p><h2>Nvidia stock surges as CEO highlights 'Insane' chip demand 💹</h2><p>Nvidia (<a href="https://nomotrade.com/en/trading/markets/stocks/NVDA">$NVDA</a>) shares rose by 5% after CEO Jensen Huang reported "insane" demand for the company’s next-gen Blackwell chips. Despite minor design delays, Huang assured that the chips are now in full production, fueling investor optimism and driving the stock higher.</p><p>But investors and analysts alike remain largely confident in the trajectory of the artificial intelligence trade. Nvidia's stock is still up about 170% over the last 12 months and more than 2,700% over the last five years. Year to date, Nvidia has gained around 150%.</p><h2>Dow leads losses as investors await jobs report 🔻</h2><p>Stocks slipped as the Dow (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>) dropped 0.4%, leading Thursday’s declines ahead of the September jobs report. Concerns over Middle East tensions pushed oil prices higher for the third straight day, while the S&amp;P 500 fell 0.2% and the Nasdaq closed slightly lower. Wall Street is closely watching the upcoming labor data amid signs of a softening job market.</p><h2>Bitcoin miners’ revenue drops to yearly low in September 📉</h2><p>In September, Bitcoin miners generated a total revenue of $815.7 million, marking the lowest level since the start of the year, according to data from The Block.</p><p>Transaction fees accounted for just $13.86 million, the lowest since the introduction of the BRC-20 standard in March 2023.</p><p>On September 11, mining difficulty hit an all-time high of 63.67 T. However, in the subsequent adjustment two weeks later, it dropped by 4.6% to 88.4 T.</p><p>Coupled with Bitcoin’s price (<a href="https://nomotrade.com/en/trading/markets/cryptocurrencies/BTCUSD">$BTCUSD</a>) recovery to around $66,000, this contributed to a rise in hashprice to approximately $48 per PH/s per day, according to Hashrate Index.</p><h2>Summary 📊</h2><p>Next week, all eyes will be on the US CPI release and several other events that could drive significant market movements.&nbsp;</p><p>Don’t miss out on these dynamic shifts — trade top assets under favorable conditions with nomo and stay ahead! You can also explore our&nbsp;<a href="https://nomotrade.com/en/blog">blog</a>, economic calendar, and&nbsp;<a href="https://nomotrade.com/en/education">educational materials</a> to enhance your trading experience.</p>

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The article provides an overview of this week's market movements, highlighting the dollar's strong rally, oil price surges amid geopolitical tensions, Nvidia's stock rise, and challenges faced by Bitcoin miners.

Weekly financial markets roundup: September 30 – October 4, 2024 | nomo blog

Weekly financial markets roundup: September 30 – October 4, 2024

<p>This week’s market movements were driven by major policy updates and stimulus expectations. The Federal Reserve's recent interest rate cut and a potential $142 billion economic boost from China fueled rallies in gold, Bitcoin, and U.S. stocks.&nbsp;</p><p>Gold ($<a href="https://nomotrade.com/en/trading/markets/commodities/XAUUSD">XAUUSD</a>) soared to a record high, approaching the $2,700 mark, while Bitcoin (<a href="https://nomotrade.com/en/trading/markets/cryptocurrencies/BTCUSD">$BTCUSD</a>) jumped above $65,000 amid optimism surrounding Chinese economic support. Meanwhile, the Dow (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>) and S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>) reached fresh record highs despite mixed U.S. economic data, and oil markets faced pressure due to anticipated increases in supply from Saudi Arabia and Libya.&nbsp;</p><p>In tech news, Intel ($<a href="https://nomotrade.com/en/trading/markets/stocks/INTC">INTC</a>) is nearing an $8.5 billion funding deal with the U.S. government, which could be finalized by the end of the year.</p><p>Get the full breakdown of this week’s key events and market impacts in our comprehensive report!</p><figure class="image"><img src="/uploads/Visual_Weekly_financial_markets_roundup_September_23_27_2024_1575df5815.jpeg"></figure><h2>Gold prices hit record high above $2,700 📈</h2><p>Gold prices (<a href="https://nomotrade.com/en/trading/markets/commodities/XAUUSD">$XAUUSD</a>) surged, marking the fifth consecutive session of gains and hitting a fresh all-time high. The precious metal is now on the verge of breaking the $2,700 threshold for the first time in history, driven by sustained weakness in the US dollar.</p><p>The broader metals market was lifted by a steep decline in the dollar, which slumped to a 14-month low following last week’s interest rate cut by the Federal Reserve. The central bank’s decision signaled the beginning of a new monetary easing cycle, with expectations of additional rate cuts in the coming months.</p><p>Dovish commentary from several Fed officials and a series of disappointing US economic data have fueled market expectations for a more aggressive 0.5% rate cut in November, adding further momentum to gold’s rally.</p><h2>Bitcoin soars above $65,000 amid hopes of Chinese economic stimulus 💹</h2><p>Bitcoin (<a href="https://nomotrade.com/en/trading/markets/cryptocurrencies/BTCUSD">$BTCUSD</a>) jumped 3.5%, breaking above $65,000 and reaching its highest level in nearly two months. The rally was sparked by a Bloomberg report suggesting that the Chinese government is weighing a potential 1 trillion yuan ($142 billion) capital injection into major state-owned banks to boost lending. The news follows the People’s Bank of China’s announcement of new stimulus measures earlier in the week.</p><p>The world’s largest cryptocurrency climbed to an intraday high of $65,811, its strongest performance since July 31, according to Dow Jones Market Data.</p><h2>Dow and S&amp;P 500 hit record highs 🏅</h2><p>U.S. stock markets finished higher, with the Dow Jones Industrial Average and S&amp;P 500 both closing at fresh record highs. After a brief dip on weaker-than-expected consumer confidence figures, the indices bounced back, buoyed by optimism surrounding China’s new economic stimulus plans.&nbsp;</p><p>The Dow (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>) gained 260.36 points to settle at 42,175.11 — its second-highest close on record.&nbsp;</p><p>The S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>) rose 23.11 points to end at 5,745.37, marking its 42nd all-time closing high this year.</p><h2>Oil set for significant weekly loss amid rising supply concerns ⛽</h2><p>Oil prices stabilized following a steep two-day selloff but remain on track for a substantial weekly drop due to expectations of increased supply from OPEC producers Saudi Arabia and Libya.&nbsp;</p><p>Brent crude (<a href="https://nomotrade.com/en/trading/markets/commodities/BRNUSD">$BRNUSD</a>) hovered near $72 per barrel, down 3.5% for the week, while West Texas Intermediate (<a href="https://nomotrade.com/en/trading/markets/commodities/WTIUSD">$WTIUSD</a>) traded below $68.&nbsp;</p><p>Reports suggest Saudi Arabia is committed to boosting production, while Libya’s rival factions reached an agreement to appoint a new central bank governor, potentially resolving a dispute that has curtailed the country’s oil output.</p><h2>Intel and US to finalise $8.5 billion in chips funding by year 💰</h2><p>Intel (<a href="https://nomotrade.com/en/trading/markets/stocks/INTC">$INTC</a>) is reportedly close to securing $8.5 billion in direct funding from the U.S. government, with the deal expected to be finalized by the end of the year, according to the Financial Times. Sources familiar with the matter indicate that discussions are in advanced stages, though there’s no guarantee that the agreement will be completed before 2024.&nbsp;</p><p>The report also notes that any potential acquisition or restructuring of Intel’s business could complicate the negotiations. Neither Intel nor the U.S. Department of Commerce have commented on the matter.</p><h2>Summary 📊</h2><p>Next week, all eyes will be on the NFP release and several other events that could drive significant market movements.&nbsp;<br>Don’t miss out on these dynamic shifts — trade top assets under favorable conditions with nomo and stay ahead! You can also explore our&nbsp;<a href="https://nomotrade.com/en/blog">blog</a>, economic calendar, and&nbsp;<a href="https://nomotrade.com/en/education">educational materials</a> to enhance your trading experience.</p>

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The article provides an overview of this week's major market movements driven by central bank decisions and global economic stimulus expectations.

Weekly financial markets roundup: September 23 – 27, 2024 | nomo blog

Weekly financial markets roundup: September 23 – 27, 2024

ETFs

trading category description Dive into data-driven insights and strategic opportunities in the nomo

Trading | nomo Blog

Trading

<p>ETFs (<a href="https://nomotrade.com/en/blog/trading/investing-in-etfs-benefits-and-strategies-for-growth">Exchange-Traded Funds</a>) and mutual funds are two of the most popular investment vehicles available to both novice and seasoned investors. Both allow for the diversification of capital across a range of assets, including stocks, bonds, and commodities, but they differ significantly in structure, management, and cost.&nbsp;</p><p>Mutual funds are professionally managed and are typically intended for long-term investment goals, whereas ETFs are traded on an exchange like stocks, making them more flexible and liquid.&nbsp;</p><p>Understanding these differences can help investors choose the right vehicle to meet their financial objectives, whether those are short-term gains or long-term wealth accumulation.</p><h2>How ETFs and mutual funds operate 📊</h2><p>ETFs and mutual funds differ significantly in how they are structured and managed. Mutual funds are generally actively managed, meaning portfolio managers make decisions on which assets to buy or sell based on market analysis and the fund’s objectives. In contrast, ETFs typically follow a passive investment strategy, tracking specific&nbsp;<a href="https://nomotrade.com/en/blog/trading/sandp-500-future-projections-and-long-term-outlook">indexes like the S&amp;P 500</a> or the MSCI World. This active management in mutual funds results in higher costs due to management fees, with average expense ratios ranging from 0.50% to 2.00% per year, whereas ETFs tend to have lower expense ratios, often below 0.20%, due to their passive nature.</p><p>Another key distinction is in trading flexibility. Mutual funds are only priced once per day after the market closes, meaning investors can only buy or sell shares at the end-of-day price. ETFs, on the other hand, are traded throughout the day on stock exchanges, just like individual stocks. This makes ETFs more suitable for investors looking for intraday liquidity or who want to take advantage of short-term price movements.</p><h2>Expense ratios, fees, and tax implications ⚙️</h2><figure class="table" style="float:left;width:451.27559055118115pt;"><table><tbody><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;">&nbsp;</td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>ETFs</strong></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>Mutual Funds</strong></p></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>Average Expense Ratio</strong></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">0.05% to 0.20%</p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">0.50% to 2.00%</p></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>Management Fees</strong></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">Low (Passive Management)</p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">High (Active Management)</p></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>Transaction Costs</strong></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">Low (Exchange-Traded)</p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">None (Not exchange-traded)</p></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><strong>Tax Efficiency</strong></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">High (No capital gains tax until sold)</p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;">Lower (Capital gains taxes incurred during portfolio adjustments)</p></td></tr></tbody></table></figure><p><br>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>ETFs and mutual funds cater to different types of investors depending on their financial goals, investment horizon, and risk tolerance.</p><p>ETFs are generally more suitable for cost-conscious investors who are looking for long-term growth with lower management fees. Since ETFs have expense ratios ranging from 0.05% to 0.20%, they are an excellent choice for individuals with smaller starting investments — perhaps as low as $1,000 to $5,000 — who want to minimize costs. Their tax efficiency also appeals to investors seeking to build wealth over time, as capital gains taxes are deferred until the ETF is sold. For example, an investor looking to grow their portfolio by 7-8% annually over a 10-15 year period may find ETFs advantageous due to their low costs and potential for compounding returns.</p><p>On the other hand, mutual funds might be a better option for investors who prefer active management and are willing to pay higher fees in exchange for potentially higher returns. These funds are often chosen by those with larger starting capital — $10,000 or more — who may be targeting specific market sectors or investment strategies. While mutual funds have higher expense ratios (0.50% to 2.00%) and are less tax-efficient, they are ideal for investors seeking professional oversight and long-term investment strategies. A mutual fund investor might expect annual returns between 6-10%, depending on the fund's objectives and market conditions.</p><h2>Day-to-day vs. end-of-day pricing 💸</h2><p>One of the significant differences between ETFs and mutual funds is how they are priced and traded. ETFs are traded on exchanges, similar to individual stocks, meaning they can be bought and sold throughout the trading day. This offers investors greater flexibility, as they can react to market conditions in real-time. The price of an ETF fluctuates during the day based on supply and demand, allowing for intraday price movements and short-term trading strategies.</p><p>In contrast, mutual funds do not trade on exchanges and are priced only once a day, at the end of the trading session. This pricing is based on the fund's net asset value (NAV), which is calculated by dividing the total value of the fund's assets by the number of shares outstanding. Investors in mutual funds can only buy or sell shares at the NAV price determined after the market closes, limiting their ability to respond quickly to market changes.</p><h3>Key differences ⏰</h3><p><strong>ETFs:</strong></p><ul><li>Traded throughout the day on stock exchanges.</li><li>Prices fluctuate based on market conditions and investor demand.</li></ul><p><strong>Mutual funds:</strong></p><ul><li>Priced once a day based on NAV, after the market closes.</li><li>Transactions are completed at the end-of-day price, with no intraday trading.</li></ul><h2>Historical returns and market volatility 📉</h2><p>When it comes to historical returns, ETFs and mutual funds can perform similarly, depending on the underlying assets they track or manage. For instance, an ETF that tracks a broad market index like the S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>) will generally mirror the&nbsp;<a href="https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp#:~:text=The%20index%20has%20returned%20a,will%20not%20enjoy%20such%20returns.">historical returns</a> of that index, which have averaged around 7-8% per year over the past few decades. These returns come with relatively low fees and minimal active management, making ETFs a popular choice for investors seeking long-term growth.</p><p>Mutual funds, particularly actively managed ones, often aim to outperform the market through strategic asset selection and market timing. While some funds have been successful in generating above-average returns, many studies show that the majority of actively managed funds fail to consistently outperform their benchmarks over long periods. For example, a&nbsp;<a href="https://www.spglobal.com/spdji/en/research-insights/research/">study by S&amp;P Dow Jones Indices</a> found that over a 10-year period, 85% of actively managed large-cap funds underperformed the S&amp;P 500. Despite this, actively managed funds can offer value in specific market segments or during periods of high volatility, where skilled managers might be able to navigate complex market conditions better than passive strategies.</p><p>In terms of volatility, ETFs, particularly those tracking broad indices, tend to exhibit lower volatility due to their diversified nature. Since they passively follow the market, their volatility usually reflects the ups and downs of the broader market. Mutual funds, on the other hand, can be more volatile, especially those that focus on niche markets, specific sectors, or employ aggressive strategies. The higher volatility in actively managed funds can be a double-edged sword, offering higher potential returns but also increasing the risk of significant losses during market downturns.</p><p>For instance, during the 2008 financial crisis, many actively managed mutual funds experienced substantial losses due to the sharp market decline, while some passively managed ETFs tracking large, diversified indices saw less severe declines. Conversely, during bull markets, certain actively managed funds may outperform broad market ETFs by a significant margin, benefiting from more focused asset selection.</p>

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This article provides a detailed comparison between ETFs and mutual funds, focusing on their structure, costs, and performance to help investors choose the best option for their financial goals.

ETFs vs. Mutual Funds: A Comparative Analysis | nomo blog

ETFs vs. mutual funds: a comparative analysis

The article analyzes the differences between ETFs and mutual funds in terms of management, fees, tax implications, and historical returns, offering insights for investors of all levels.

<p>This week was all about key interest rate decisions from major central banks. The Federal Reserve surprised markets with a 50 basis point rate cut, while the Bank of England held its rate steady, and the Bank of Japan maintained its September policy unchanged, as widely expected. Amid this backdrop, market volatility surged, with the Dow hitting a historic high, alongside gold. Bitcoin also saw a significant rise, reflecting growing interest from investors.&nbsp;</p><p>Stay tuned for a detailed recap of this week’s market events in our full report.</p><h2>Stocks surge a day after Federal Reserve's first interest rate cut since 2020 🇺🇸</h2><p>Stocks surged a day after the Federal Reserve implemented its first interest rate cut since 2020, slashing the benchmark rate by 0.50 percentage points. Investors welcomed the move as a preemptive strike against a potential slowdown in U.S. economic growth.&nbsp;</p><p>The Dow Jones (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>) rallied 479 points (1.1%) to close at 42,025, while the S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>) jumped 95 points (1.7%) to finish at 5,715, and the Nasdaq (<a href="https://nomotrade.com/en/trading/markets/indices/NDXUSD">$NDXUSD</a>) surged 2.5%.&nbsp;</p><p>“Stocks are exploding higher as markets absorb the Fed’s outsized rate cut,” noted Adam Crisafulli from Vital Knowledge.&nbsp;</p><p>Lower rates stimulate markets by making borrowing cheaper and boosting the value of riskier assets such as equities, gold, and cryptocurrencies.</p><p>For a detailed analysis of market reactions, check out our&nbsp;<a href="https://nomotrade.com/en/blog/updates/fed-cuts-rates-by-05-to-kickstart-easing-cycle">full article here</a>.</p><h2>Bank of England holds interest rate at 5% 💷</h2><p>At its September meeting, the Bank of England decided to maintain its base interest rate at 5% annually, aligning with market expectations. While some investors anticipated a potential rate cut, only one out of the nine members of the Monetary Policy Committee (MPC) supported the idea.&nbsp;</p><p>The&nbsp;<a href="https://nomotrade.com/en/trading/markets/forex/GBPUSD">$GBPUSD</a> continues to trade strongly near the 1.3300 mark, its highest level since March 2022, buoyed by the BoE’s decision and a dovish shift from the Fed, which is driving USD weakness.</p><p>The technical outlook remains favorable for GBP bulls, supporting further gains in the near term.</p><h2><img src="/uploads/Visual_Weekly_financial_markets_roundup_September_16_20_2024_98a0611dd4.jpeg">Gold consolidates weekly gains, eyes $2,600 and beyond 🏅</h2><p>Gold prices (<a href="https://nomotrade.com/en/trading/markets/commodities/XAUUSD">$XAUUSD</a>) are holding steady early Friday, building on the previous day’s rebound as the US Dollar and Treasury bond yields softened overnight. The precious metal continues to consolidate its weekly gains, with investors now turning their attention to upcoming speeches from US Federal Reserve policymakers for new insights into the future of interest rates. With market momentum favoring gold, traders are eyeing a potential move towards the $2,600 mark and beyond.</p><h2>Bitcoin surges 6% following Fed’s 50 basis point rate cut 📈</h2><p>Bitcoin (<a href="https://nomotrade.com/en/trading/markets/cryptocurrencies/BTCUSD">$BTCUSD</a>) surged 6% in the last 24 hours, trading near $63,000, after the Federal Reserve's decision to slash its benchmark interest rate by 50 basis points. The broader crypto market also benefited, with the total market capitalization rising 2% in response.&nbsp;</p><p>Despite September traditionally being Bitcoin’s weakest month, the cryptocurrency is up 7% this time. However, traders remain cautious ahead of the Bank of Japan's upcoming policy meeting, which could have a notable impact on Bitcoin's future price trajectory.</p><h2>BlackRock and Microsoft to create $30 billion AI investment fund 🤖</h2><p>BlackRock, Global Infrastructure Partners (GIP), Microsoft (<a href="https://nomotrade.com/en/trading/markets/stocks/MSFT">$MSFT</a>), and MGX have announced the launch of the Global AI Infrastructure Investment Partnership (GAIIP). This initiative includes the creation of a $30 billion fund to finance AI-related infrastructure projects. According to the press release, the partnership aims to meet the increasing demand for computing power. The fund will focus on supporting infrastructure projects, including data centers and new energy sources to power them.</p><h2>Summary 📊</h2><p>This week saw significant market movement with the Federal Reserve’s 50 basis point rate cut, driving a 6% surge in Bitcoin and record highs for the Dow. The Bank of England held rates at 5%, while the Bank of Japan maintained its policy, adding to market volatility. Gold continued its climb towards $2,600, and the crypto market strengthened overall. Meanwhile, BlackRock and Microsoft announced a $30 billion AI infrastructure investment fund, responding to rising demand for data centers and energy solutions.&nbsp;</p><p>Don't miss out on these dynamic market shifts — trade top assets under favorable conditions with nomo and stay ahead of the game!<br>&nbsp;</p>

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his article covers the key interest rate decisions from major central banks this week and their impact on global markets, including moves in gold, stocks, and cryptocurrencies.

Weekly financial markets roundup: September 16 – 20, 2024 | nomo blog

Weekly financial markets roundup: September 16 – 20, 2024

The key interest rate decisions from major central banks this week and their impact on global markets, including moves in gold, stocks, and cryptocurrencies.

<p>The 🇺🇸Federal Reserve made a significant policy shift on Wednesday, cutting its benchmark interest rate by half a percentage point. This marks the beginning of a new easing cycle, the first since the pandemic's onset. With this decision, the federal funds rate now sits between 4.75% and 5%, a notable change after more than a year of holding rates at their highest levels since 2001.</p><p>In a rare move, Michelle Bowman, a member of the 🏦Federal Open Market Committee, opted for a more cautious quarter-point cut, becoming the first Fed governor since 2005 to dissent from a rate decision.</p><p>The substantial half-point reduction indicates the Fed's proactive stance to counter any potential weakening in the US economy and labor market. Not since the early days of the COVID-19 😷pandemic in 2020 has the central bank implemented a rate cut of this magnitude.</p><p>"The US economy is in a good place, and our decision today is designed to keep it there," said Fed Chair Jay Powell. He emphasized that this policy adjustment aims to sustain the economy's momentum, bolster the labor market, and make further progress toward inflation targets as the Fed moves towards a more neutral stance.</p><p><strong>Market reaction:</strong></p><figure class="table" style="float:left;"><table><tbody><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><span style="font-family:Inter, sans-serif;"><strong>S&amp;P 500</strong>&nbsp;</span><a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD"><span style="font-family:Inter, sans-serif;">($SPXUSD)</span></a><span style="font-family:Inter, sans-serif;"> 📉</span></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;">Closed near flat at 5,634 after hitting a record high earlier, as previously&nbsp;</span><a href="https://nomotrade.com/en/blog/trading/sandp-500-future-projections-and-long-term-outlook"><span style="font-family:Inter, sans-serif;">projected in our article</span></a><span style="font-family:Inter, sans-serif;">.</span></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;"><strong>Dow Jones</strong>&nbsp;</span><a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD"><span style="font-family:Inter, sans-serif;">($DJIUSD</span></a><span style="font-family:Inter, sans-serif;">) 📉</span></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;">Slightly dipped by 0.04% to 41,606.</span></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><span style="font-family:Inter, sans-serif;"><strong>Nasdaq&nbsp;</strong></span><a href="https://nomotrade.com/en/trading/markets/indices/NDXUSD"><span style="font-family:Inter, sans-serif;">($NDXUSD)</span></a><span style="font-family:Inter, sans-serif;">📈</span></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;">Gained 0.2%, finishing at 17,628.</span></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><span style="font-family:Inter, sans-serif;"><strong>Gold</strong>&nbsp;</span><a href="https://nomotrade.com/en/trading/markets/commodities/XAUUSD"><span style="font-family:Inter, sans-serif;">($XAUUSD)</span></a><span style="font-family:Inter, sans-serif;"> 📈</span></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;">Surged closer to its all-time peak, with $2,600 in sight.</span></td></tr><tr><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><p style="text-align:center;"><a href="https://nomotrade.com/en/trading/markets/forex/EURUSD"><span style="font-family:Inter, sans-serif;">$EURUSD</span></a><span style="font-family:Inter, sans-serif;"> 💹</span></p></td><td style="border:1pt solid #000000;padding:5pt;vertical-align:top;"><span style="font-family:Inter, sans-serif;">Jumped above 1.1150, reacting positively to the rate cut.</span></td></tr></tbody></table></figure><p><br>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>Stay tuned to 🔵 nomo for the latest market moves and updates on key releases to keep up with how the markets respond.</p>

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The Federal Reserve cuts rates by 0.5%, signaling a new easing cycle. Markets react with mixed movements in stocks, gold surges, and EUR/USD jumps.


Fed cuts rates by 0.5% to kickstart easing cycle | nomo blog

Fed cuts rates by 0.5% to kickstart easing cycle

The article discusses the Federal Reserve's decision to cut interest rates by 0.5%, marking the start of a new easing cycle, and the subsequent market reactions.

<p>This week saw a continuation of the tech rally that propelled major U.S. indices to new highs. The S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>) and Nasdaq (<a href="https://nomotrade.com/en/trading/markets/indices/NDXUSD">$NDXUSD</a>) marked their fourth consecutive day of gains, with tech stocks driving the upward momentum. Investors closely monitored fresh inflation and labor data, which reinforced expectations of a quarter-point interest rate cut from the Federal Reserve at its upcoming meeting. Meanwhile, the European Central Bank (ECB) followed suit, lowering its policy rate by 25 basis points, as anticipated, fueling further optimism in the markets.</p><p>Let’s dive into the key market developments of the week.</p><h2>Gold hits all-time high as Fed rate-cut speculation boosts appeal 💰</h2><p>Gold (<a href="https://nomotrade.com/en/trading/markets/commodities/XAUUSD">$XAUUSD</a>) prices&nbsp;<a href="https://www.reuters.com/markets/commodities/gold-hits-all-time-high-fed-rate-cut-hopes-bolster-appeal-2024-09-12/">surged to a record high</a>, driven by growing expectations of an interest rate cut from the Federal Reserve next week, following signals of a cooling U.S. economy. Spot gold rose 1.7%, reaching $2,570 per ounce, while U.S. gold futures closed 1.5% higher at $2,580.60 per ounce.</p><p>This rally was fueled by U.S. Labor Department data showing a slight uptick in initial jobless claims, rising by 2,000 to a seasonally adjusted 230,000, alongside modest producer price increases in August. Despite the higher service costs, inflation trends appear to be easing.</p><h2>Dollar drops as Yen strengthens on hawkish Bank of Japan signals 💴</h2><p><a href="https://www.reuters.com/markets/global-markets-wrapup-1-2024-09-13/">The U.S. dollar fell sharply</a>, dropping as much as 0.97% to 140.415 yen (<a href="https://nomotrade.com/en/trading/markets/forex/USDJPY">$USDJPY</a>), its weakest level since December 28. The yen’s rally was bolstered by hawkish comments from Bank of Japan officials, including policy board member Naoki Tamura, who expressed concern on Thursday about rising inflation risks.</p><p>The dollar index, which measures the greenback against the yen and five other major currencies, fell to a one-week low at 101.00. U.S. Treasury yields also reacted, with benchmark 10-year Treasuries rallying and pushing yields down 4 basis points to 3.638%. The more rate-sensitive two-year yields dropped 6.3 basis points to 3.585%, reflecting the growing uncertainty surrounding the U.S. economic outlook.</p><h2>EUR/USD gains from 1.1000 after ECB delivers 25 bps rate cut 💶</h2><p>The&nbsp;<a href="https://nomotrade.com/en/trading/markets/forex/EURUSD">$EURUSD</a> pair&nbsp;<a href="https://www.fxstreet.com/news/eur-usd-struggles-near-11000-with-ecb-policy-taking-centre-stage-202409120951">rebounded</a> from the 1.1000 level following the European Central Bank’s (ECB) decision to cut its key borrowing rates by 25 basis points, as anticipated. This marks the second rate cut in the ECB’s ongoing policy-easing cycle. The Rate On Deposit Facility was lowered to 3.5%, while the Main Refinancing Operations Rate was reduced by 60 bps to 3.65%.</p><p>The euro’s recovery was supported not only by the ECB’s rate cuts but also by the weakening U.S. dollar. Softer-than-expected U.S. Producer Price Index (PPI) data for August added pressure on the dollar, helping&nbsp;<a href="https://nomotrade.com/en/trading/markets/forex/EURUSD">$EURUSD</a> bounce back from its more than three-week low during the North American session.</p><h2>Oracle sees $104 billion sales in fiscal 2029 on cloud expansion 💻</h2><p>Oracle Corp. (<a href="https://nomotrade.com/en/trading/markets/stocks/ORCL">$ORCL</a>)&nbsp;<a href="https://finance.yahoo.com/news/oracle-sees-104-billion-sales-201838276.html">projected</a> that its annual revenue will reach at least $104 billion by fiscal 2029, highlighting the growth potential of its cloud infrastructure business. This optimistic forecast was shared during Oracle's annual financial analyst briefing on Thursday, causing the company's shares to surge by 5% in extended trading.</p><p>The company, which has been one of the top-performing software stocks this year with a 53% gain, also updated its revenue outlook for fiscal 2026, raising it to at least $66 billion from the previously projected $65 billion. This exceeds analysts' expectations, who had estimated $64.5 billion in revenue for 2026, according to a Bloomberg survey.</p><figure class="image"><img src="/uploads/Visual_Weekly_financial_markets_roundup_September_9_13_2024_9872af60d1.jpeg"></figure><h2>Nvidia stock is back on top 🤖</h2><p>Nvidia (<a href="https://nomotrade.com/en/trading/markets/stocks/NVDA">$NVDA</a>) is poised to finish the week on a high note, with its stock gaining 1.92% in Friday’s premarket trading. After a stellar performance throughout the week, Nvidia is looking to extend its upward momentum as investors continue to show confidence in the company’s growth prospects, particularly in the artificial intelligence and semiconductor sectors.</p><h2>Summary 📊</h2><p>The upcoming week promises to be pivotal for the financial markets, with central banks gearing up to announce their key interest rate decisions. On September 18th, the Federal Reserve will decide whether to cut rates by 0.25% or 0.50%, or perhaps leave them unchanged. This decision could spark significant market reactions, particularly in major indices like the Dow Jones (<a href="https://nomotrade.com/en/trading/markets/indices/DJIUSD">$DJIUSD</a>), Nasdaq (<a href="https://nomotrade.com/en/trading/markets/indices/NDXUSD">$NDXUSD</a>), and S&amp;P 500 (<a href="https://nomotrade.com/en/trading/markets/indices/SPXUSD">$SPXUSD</a>). Additionally, currency traders will be closely watching pairs like&nbsp;<a href="https://nomotrade.com/en/trading/markets/forex/EURUSD">$EURUSD</a> and&nbsp;<a href="https://nomotrade.com/en/trading/markets/forex/GBPUSD">$GBPUSD</a>, as the Bank of England is also scheduled to announce its rate decision later in the week.</p><p>Don't miss out on these potential opportunities — trade the financial markets with nomo and stay ahead of the curve as these crucial economic events unfold.</p>

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This article provides a comprehensive overview of key developments in the financial markets during the week of September 9-13, 2024, covering major movements in stocks, commodities, currencies, and corporate earnings.

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