Headline: Markets Climb on Dovish Fed Hints as Yen Surges and Oil Slips
A cautious Friday turned risk-on after dovish signals from the Federal Reserve helped ease recession worries and support equities. Early losses in stocks and crypto reversed when NY Fed President John Williams suggested support for another rate cut in December, prompting traders to boost the probability of near-term easing. A later bounce in tech followed chatter around potential U.S. approvals for Nvidia chip sales to China, though gains faded into the close amid lingering doubts.
Equities finished firmer with the S&P 500 up 1.0%, while U.S. 10-year Treasury yields fell to 4.065% as rate-cut expectations firmed ahead of the Fed’s pre-meeting blackout period. Economic data were mixed but broadly resilient: the U.S. November S&P Global services PMI topped forecasts at 55.0, final University of Michigan consumer sentiment edged up to 51.0, and the Atlanta Fed’s GDPNow held at 4.2% for Q3. Elsewhere, Canada’s September retail sales matched the -0.7% consensus. Policymaker headlines remained active, with Fed officials advocating patience to assess policy, the ECB noting inflation near its target in the foreseeable future, and a calendar note that October CPI was canceled with November CPI due November 18.
In foreign exchange, the Japanese yen led gains after a Bank of Japan official hinted the central bank is nearing a rate-hike decision, triggering talk of possible intervention and a sharp pullback in USD/JPY. The U.S. dollar was modestly stronger on the week, while the euro softened. Commodities were mixed: gold eased by $13 to $4,060 as investors consolidated recent gains, WTI crude slipped to $57.97 on geopolitics and growth concerns, and Bitcoin fell 2.6% to $84,926 amid broad risk swings and profit-taking in digital assets.
Key Points: – NY Fed’s Williams signaled openness to a December rate cut, boosting risk appetite and lowering Treasury yields. – S&P 500 rose 1.0%; U.S. 10-year yield dipped to 4.065%; gold and oil declined; Bitcoin fell 2.6%. – U.S. services PMI beat at 55.0 and consumer sentiment improved; GDPNow held at 4.2% for Q3. – Yen outperformed on BOJ’s hawkish tilt; intervention chatter pressured USD/JPY; euro saw mild weakness. – Tech rallied on reports of potential Nvidia chip sales to China, though gains faded into the close. – October CPI release was canceled; November CPI is scheduled for November 18.
