Market developments
Equities: The S&P 500 and Nasdaq Index rose ~0.80%, while the TSX climbed nearly 1.5%. Netflix’s stock surged 11%, marking its best session since January after it reported adding over 5 million new subscribers in Q3. U.S.-listed Chinese stocks rallied to close out the week following President Xi Jinping’s commitment to support the tech sector, contributing to overall market optimism.
Fixed income: Analysts suggest that strong economic data could complicate the Fed’s decision-making regarding rate cuts. Some noted that a pause in rate cuts would require consistently strong economic reports leading up to November. The euro weakened as expectations grew for a significant rate cut from the European Central Bank, while the Japanese yen approached levels that may prompt intervention from Japan’s authorities.
Commodities: Oil had a weekly decline, influenced by geopolitical tensions in the Middle East following the death of Hamas leader Yahya Sinwar. Gold has surpassed $2,700 an ounce for the first time, as investors seek safe havens amidst escalating conflicts and a tight U.S. election environment.