New highs for US stocks while gold makes gains
The record highs keep coming ahead of this week's Fed decision, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
US stocks clock up more records
While the focus lies squarely on the Fed this week, the equity rally shows no sign of slowing down on Wall Street. Friday’s record for the Dow has been followed up by new milestones for the S&P 500 and the Nasdaq 100. Of course, there might be some ‘buy the rumour, sell the fact’ action later in the week, but for the moment stocks continue to ignore any possibility of September weakness. Musk’s decision to buy more Tesla stock seems to encapsulate how investors have returned to US stocks after the turmoil seen earlier in the year.
Gold pushes higher
A rate cut is bound to be a boon for gold prices too, though last week saw the commodity consolidate after its impressive surge from $3350 to $3650. Like stocks, however, gold perhaps risks some short-term losses if the Fed doesn’t display a firm conviction about rate cuts at its next two meetings.
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