Weekly Market Update

Key Events of the Week:
• US stocks rose on Monday as gold rallied to a record high, leading investors to seek safe-haven assets amid rising concerns about a potential government shutdown and trade tensions
• The Dow Jones Industrial Average (^DJI) added 0.6%, while the S&P 500 (^GSPC) rose 0.5% and the Nasdaq Composite (^IXIC) gained 0.4%.
• The S&P 500 (^GSPC) hit a fresh record high as optimism around tech offset mounting political concerns ahead of megacap earnings and a Federal Reserve rate decision.
• However, the Dow Jones Industrial Average (^DJI) shed roughly 0.8% due to a slide in UnitedHealth (UNH) shares.
• The Federal Reserve held interest rates unchanged at its first policy decision of the year.
• Markets were pricing in two quarter-point rate reductions by the end of 2026, according to CME FedWatch.
• Tech stocks were in focus as megacap companies including Microsoft (MSFT) and Meta Platforms (META) released earnings reports.
• US stocks slid on Friday after President Trump said he would nominate Kevin Warsh to lead the Federal Reserve, against a background of a rising dollar and a screeching halt to 2026's roaring metals rally.
• The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) fell 0.4% and 0.9%, respectively.


Analysis:

Concerns about a potential government shutdown, trade tensions, and rising uncertainty likely drive the recent surge in gold prices. The weak dollar has also contributed to the rally in precious metals. However, the impact of President Trump's nomination of Kevin Warsh as the new Federal Reserve chair is uncertain, and markets are watching for signs of policy changes.

The strong earnings reports from megacap tech companies like Meta Platforms (META) and Tesla (TSLA) have boosted investor confidence in the sector. However, the concerns about AI spending plans highlighted by Microsoft's (MSFT) disappointing earnings report indicate the sector is facing challenges.

Overall, the past week has been marked by significant market volatility due to geopolitical tensions, trade uncertainties, and shifting expectations for monetary policy. As we look ahead, it's essential to monitor these factors closely and assess their potential impact on US stock performance.