Stock Gains Ignore Powell’s Slightly Hawkish Remarks: Global financial markets experienced significant volatility following statements
by Federal Reserve Chairman Jerome Powell regarding expectations for interest rate cuts.
Despite Powell’s caution in his remarks, US stocks managed to post slight gains by the end of trading sessions.
Below are the details of the fundamental market movements.

Contents

Final Stock Gains Despite Caution

Strong Performance by the S&P 500

Market Outlook for the Fourth Quarter

Bond Market and Rising Yields

Future Challenges and Risks

Global Stock Movements

Currency Movements

Cryptocurrencies

Final Stock Gains Despite Caution

In the final moments of US trading, stocks gained even though Powell clarified

that the Federal Reserve was not in a hurry to make additional interest rate cuts.
Powell confirmed that rate cuts will happen “over time” and emphasized that the US economy remains strong.

Strong-Performance-by-the-S&P-500

The S&P 500 index closed the third quarter with an increase of more than $2.5 trillion,
marking the most extended quarterly gains since 2021.
At the same time, the Nasdaq 100, which focuses on the technology sector, achieved a similar performance.

Market Outlook for the Fourth Quarter

Emily Bowersock Hill from Bowersock Capital Partners believes
that the bull market will remain strong until the end of the year,
driven by rising earnings, falling interest rates,
and continued consumer spending.

She expects the fourth quarter to resemble the third in terms of volatility but with a strong finish.

Bond Market and Rising Yields

After Powell’s statements, the US bond market trimmed its historic gains.
Treasury yields rose, with the two-year note being traded at 3.64%.
Nevertheless, US bonds returned 1.4% this month.

Future Challenges and Risks

While investors await further economic data to clarify expectations for interest rate cuts,
they must contend with several challenges,

such as rising tensions in the Middle East and potential strikes by US port workers.

Global Stock Movements

European stocks fell by 1% after Stellantis cut its profit margin forecast.
Meanwhile, Chinese stocks saw a significant rise, supported by an economic stimulus package.
The CSI 300 index jumped 9.1%, the most significant increase since 2008.

Currency Movements

The euro fell by 0.3% to $1.1133

The British pound remained stable at $1.3371

The Japanese yen fell by 1% to 143.68 per dollar

Cryptocurrencies

Bitcoin dropped by 3.5% to $63,554.51

Ether fell by 2.4% to $2,598.86

Stock Gains Ignore Powell’s Slightly Hawkish Remarks

Stock Gains Ignore Powell&#8217;s Slightly Hawkish Remarks

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Stock Gains Ignore Powell’s Slightly Hawkish Remarks