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A sense of uncertainty continued to prevail last week, causing global stocks to suffer their worst week since April.
US stocks slipped on Thursday and finished the week flat on Friday, even though they recovered part of the earlier decline.
There were a number of positive drivers last week that helped global equities to steam ahead on the current rally.
Last week was characterised by large swings in the major asset classes as investor sentiment shifted in response to market news.
It was a week that felt all too familiar as another French prime minister resigned (before subsequently returning) and US stocks fell sharply following another tariff announcement.
Global equities posted marginal gains in EUR terms last week. This was despite a few market jitters in the US after Fed Chair Jerome Powell’s comments that “by many measures…equity prices are fairly highly valued”, which prevented major indices from setting their fourth record in a row on Tuesday.
On Wednesday, the Federal Reserve decided to reduce interest rates by 25bps, the first cut in nine months.
AI was leading the news again last week, but this time none of the Magnificent Seven companies were responsible.
The market’s eyes were fixed on the US non-farm payrolls report last week, which provided an important snapshot of the US labour market ahead of the Fed’s September policy meeting.
NVIDIA’s sales soared 56% for the quarter, reaching an impressive $46.74 billion. Despite this strong performance, the stock dipped on Thursday as investors weighed the latest earnings report.