Weekly financial markets roundup: September 23 – 27, 2024

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. 

Gold ($XAUUSD) soared to a record high, approaching the $2,700 mark, while Bitcoin ($BTCUSD) jumped above $65,000 amid optimism surrounding Chinese economic support. Meanwhile, the Dow ($DJIUSD) and S&P 500 ($SPXUSD) 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. 

In tech news, Intel ($INTC) is nearing an $8.5 billion funding deal with the U.S. government, which could be finalized by the end of the year.

Get the full breakdown of this week’s key events and market impacts in our comprehensive report!

Gold prices hit record high above $2,700 📈

Gold prices ($XAUUSD) 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.

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.

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.

Bitcoin soars above $65,000 amid hopes of Chinese economic stimulus 💹

Bitcoin ($BTCUSD) 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.

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.

Dow and S&P 500 hit record highs 🏅

U.S. stock markets finished higher, with the Dow Jones Industrial Average and S&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. 

The Dow ($DJIUSD) gained 260.36 points to settle at 42,175.11 — its second-highest close on record. 

The S&P 500 ($SPXUSD) rose 23.11 points to end at 5,745.37, marking its 42nd all-time closing high this year.

Oil set for significant weekly loss amid rising supply concerns ⛽

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. 

Brent crude ($BRNUSD) hovered near $72 per barrel, down 3.5% for the week, while West Texas Intermediate ($WTIUSD) traded below $68. 

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.

Intel and US to finalise $8.5 billion in chips funding by year 💰

Intel ($INTC) 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. 

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.

Summary 📊

Next week, all eyes will be on the NFP release and several other events that could drive significant market movements. 
Don’t miss out on these dynamic shifts — trade top assets under favorable conditions with nomo and stay ahead! You can also explore our blog, economic calendar, and educational materials to enhance your trading experience.