Fed’s Dovish Tone Sends Dollar Lower as Markets Price In More Rate Cuts 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
U.S. Stock Futures Mixed as Tech and AI Stocks Face Pressure Ahead of CPI Data 
Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
China’s Small Bank Consolidation Struggles as Profits Fall and Risks Persist 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership 
Japan Business Sentiment Hits Four-Year High, Boosting Expectations of BOJ Rate Hike 
Wall Street surged on Friday, with the S&P 500 and Nasdaq closing at all-time highs as investor sentiment rose on trade deal optimism and growing expectations for interest rate cuts by the Federal Reserve. Despite some volatility after President Trump ended trade talks with Canada over its digital tax on tech firms, all three major U.S. indexes logged weekly gains.
The Nasdaq officially entered a bull market, climbing more than 20% from its April 8 low. The Dow Jones Industrial Average jumped 432.43 points (1.00%) to 43,819.27, the S&P 500 added 32.05 points (0.52%) to 6,173.07, and the Nasdaq gained 105.55 points (0.52%) to close at 20,273.46.
Investors are increasingly betting on a Fed rate cut, with CME’s FedWatch tool showing a 76% probability of a September cut and 19% odds for July. Economic data added fuel to the rally, with May’s PCE report showing unexpected drops in consumer income and spending, while inflation stayed above the Fed’s 2% target. Consumer sentiment also improved, though it remains below post-election highs.
In sector performance, consumer discretionary led the S&P 500, while energy lagged. AI stocks gained momentum as Micron’s strong outlook boosted investor confidence. Nvidia rose 1.8%, approaching a $4 trillion valuation. Nike shares soared 15.2% after better-than-expected guidance.
Market breadth showed advancing NYSE stocks outpacing decliners by 1.29-to-1, with 347 new highs. On Nasdaq, decliners slightly outnumbered gainers. The session saw unusually high trading volume, hitting 22.07 billion shares versus the 20-day average of 18.27 billion.
Overall, investors continue riding bullish momentum driven by AI optimism, monetary policy expectations, and hopes for global trade resolution.
