In the past week, U.S. equities demonstrated exceptional performance, with both the S&P 500 Index and the Nasdaq Composite Index achieving their best single-week gains of the year, marking five consecutive weeks of increases. Specifically, the Nasdaq Composite surged by 5.95%, while the S&P 500 Index rose by 4.02%. Concurrently, heightened expectations for a 50 basis point rate cut by the Federal Reserve next week have driven gold prices to new all-time highs, reflecting a sustained and strong demand for safe-haven assets.

Strong Performance of U.S. Equities

Throughout the past week, U.S. stock markets experienced significant gains. Both the S&P 500 Index and the Nasdaq Composite Index recorded their fifth consecutive day of increases, resulting in the best weekly performance of the year. Specifically, the Nasdaq Composite climbed by 114.3 points, or 0.65%, closing at 17,683.98 points, which represents a cumulative weekly increase of 5.95%. Similarly, the S&P 500 Index advanced by 30.26 points, or 0.54%, ending at 5,626.02 points. This reflects a cumulative weekly gain of 4.02% and a five-day rebound.

(Source: uSMART HK)

The consecutive gains of the S&P 500 and Nasdaq Composite indices were driven by a series of favorable economic indicators and corporate earnings reports. Recent data suggest robust economic growth in the U.S., with the latest unemployment figures falling below expectations, which has further bolstered market confidence. In this context, investor risk appetite has increased, leading to a flow of capital into risk assets, particularly technology stocks. These stocks have significantly supported the Nasdaq Composite's performance. Notably, shares of leading technology firms such as Apple, Microsoft, and Amazon have performed strongly, contributing substantially to the Nasdaq's growth.

Furthermore, market sentiment regarding the forthcoming Federal Reserve meeting is positive. There are widespread expectations of a 50 basis point rate cut aimed at stimulating economic growth. This optimism surrounding future monetary policy, coupled with favorable economic recovery projections, has further fueled stock market gains.

Increased Rate Cut Expectations Propel Gold Prices to New Highs

Simultaneously, gold prices have achieved historic milestones. With rising expectations of a 50 basis point rate cut by the Federal Reserve next week, investors have increasingly turned to gold as a safe-haven asset to hedge against potential market volatility and economic risks.

Spot gold prices surpassed $2,586 per ounce, reaching a new all-time high, with a weekly gain exceeding 3.2%. This marks the largest weekly increase in five months. Additionally, December gold futures rose by $30.10, or 1.2%, to close at $2,610.70 per ounce, with an intraday peak of $2,614.60, setting a new record. Analysts attribute the rise in gold prices not only to the anticipated rate cuts but also to the ongoing trend of U.S. dollar depreciation, which has significantly contributed to the increase.

The current financial market presents a complex and evolving scenario. On one hand, the rise in the stock market reflects an optimistic outlook on economic prospects. On the other hand, the surge in gold prices indicates a heightened pursuit of safe-haven assets by investors. Therefore, monitoring economic data and global market dynamics remains crucial. Despite the recent robust performance of U.S. equities, the market continues to face uncertainties, including risks related to global economic slowdowns and geopolitical tensions. Consequently, the sustained rise in gold prices may present new market opportunities and challenges, particularly within a volatile global economic environment. Investors should exercise prudence in asset allocation to effectively manage potential market volatility.

How to Execute Investment Trades on uSMART

To execute trades on the uSMART HK app, log in and select the "Search" option from the top right corner of the page. Enter the relevant security code, such as "S&P 500 Index," to view detailed trading information and historical trends. Then, click on the "Trade" option at the bottom right corner, select "Buy/Sell," and enter the trade conditions to submit your order. A visual guide is provided below:

(Source: uSMART HK)