Weekly Market Update

Market Summary:

The US stock market has reached new record highs, driven by promising signs of a US-China trade deal and optimism around future growth. The Dow Jones Industrial Average (^DJI) moved 0.7% higher, while the S&P 500 (^GSPC) jumped over 1.2%, and the tech-heavy Nasdaq Composite (^IXIC) led gains with a 1.9% increase.

Key Catalysts:

1. US-China Trade Deal: The upcoming meeting between Presidents Trump and Xi Jinping is expected to bring a breakthrough in trade negotiations, which has boosted investor confidence.
2. Federal Reserve Interest Rate Decision: The Fed's decision to cut interest rates for the second time this year has provided further support to the market.
3. Earnings Season: Mega-cap tech giants such as Alphabet (GOOG), Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL) are set to report earnings, which will provide insights into their growth prospects.

Market Insights:
• The market is heading into a historically strong month of November, with the S&P 500 rising 59% of the time since 1927.
• Consumer discretionary stocks, tech stocks, healthcare stocks, industrial stocks, and small-cap stocks are expected to perform well in November.
• Nvidia has reached a $5 trillion valuation, making it the first company to achieve this milestone.

Economic Data:
• The September inflation data came in cooler than expected, with the headline Consumer Price Index rising 3% on an annual basis.
• The US economy is being largely powered by the well-to-do, with those at the lower end of the income spectrum having a higher inclination to spend as they earn more.