Financial markets started the week with cautious optimism, linked to expectations regarding interest rate changes from the Federal Reserve.
Optimism in the Stock Market
Stock indexes, including the Dow, S&P 500, and Nasdaq, showed slight gains at the start of the week. Investors are closely watching inflation data to be released soon, which could influence the Fed's decisions on interest rates. Signs of slowing job growth have increased expectations for a possible rate cut in September.
Gold Reaches New Highs
Gold has become the standout performer in 2025, setting new records by exceeding $3,650 per ounce. This rally has been driven by expectations of multiple Fed rate cuts and ongoing geopolitical uncertainty. Demand from central banks and investment funds also bolsters gold prices. Investors are increasingly turning away from bonds, which were once considered a reliable asset.
Weak Employment Reports
The latest jobs report showed a sharp slowdown in hiring. The US economy added only 22,000 jobs in August, far below expectations. This disappointing news has intensified bets that the Fed will implement a substantial rate cut. Investors are grappling with uncertainty between recession risks and the hope for lower rates, which keeps the stock market on edge.
The future of the stock market, gold prices, and the housing market remains uncertain depending on employment and inflation data. Expectations for changes in Fed policy will continue to influence market sentiment.
