Wall Street continued its upward momentum on Friday, reaching record highs fuelled by optimism around Donald Trump’s victory and a supportive 0.25% interest rate cut from the Federal Reserve. The S&P 500 rose 0.40%, setting a new record after crossing the 6 000 mark earlier in the session. The Dow also reached an all-time high, climbing 259 points to hit 44 000 for the first time, while the Nasdaq posted modest gains. The Fed's rate cut, combined with Chairman Jerome Powell’s confidence in the economy, boosted market sentiment, leading US stocks to their strongest weekly performance since November 2023. For the week, the S&P 500 and Dow gained 4.60% and 4.80%, respectively, while the Nasdaq led with a 5.80% increase.
European stocks closed sharply lower on Friday, reflecting the week's volatile trading as investors weighed the potential effects of Donald Trump’s US economic policies on the European corporate sector, along with major political developments in the EU and significant earnings reports. The STOXX 50 dropped 1.10% to close at 4 800, ending the week down by 1.60%, while the STOXX 600 slipped 0.70% to 507, marking a 0.90% decline over the week.
The Shanghai Composite dropped 0.70% to around 3 430 on Friday, continuing losses from the previous session as China’s latest stimulus measures left investors underwhelmed. China introduced a 10 trillion yuan debt plan intended to support local government financing and stabilise its struggling economy on Friday. However, the absence of direct economic stimulus raised concerns that the measures might be insufficient to counter additional US tariffs and escalating tensions under Donald Trump’s presidency. Adding to the cautious mood, weekend data revealed that China’s consumer inflation rose less than expected in October, while producer prices declined for the 25th consecutive month.
The FTSE/JSE All Share Index closed around 1% lower at 85 125 on Friday, reversing gains from the previous day, with resource-linked sectors applying the most pressure. Meanwhile, investors considered the latest Fed policy decision and continued evaluating the potential impact of the new Trump administration's policies on the global economy. For the week, the JSE declined by about 1.20%. The local currency, which surged 2.10% on Thursday, pulled as the dollar regained its footing on Friday. At 18h00, the rand had weakened 1.53% to R17.56/$, 0.84% to R18.83/€ and 1.07% to R22.69/£.
In the commodities markets, gold dropped 0.68% to $2 687.60 per ounce, on track for its sharpest weekly decline in over five months due to pressure from a stronger dollar, Reuters reported. Platinum fell 2.25% to $972.65 per ounce, while Brent crude slipped 2.74% to $73.46 per barrel.
