In a remarkable display of sustained bullish momentum, Wall Street witnessed a surge of optimism as the Dow Jones Industrial Average marked its ninth consecutive day of gains. Propelled by the Federal Reserve’s recent dovish shift in interest rate policy, the market displayed confidence, with the Dow climbing over 200 points.

In a session reflective of the varying dynamics of today’s economy, Wall Street on Friday showcased a mixed performance with the Dow Jones Industrial Average and Nasdaq Composite climbing higher, while the S&P 500 slightly recoiled.

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Stagflation represents the worst of both worlds for a country’s economy.

As we look to the coming week, China’s challenges persist. The future of the dollar’s rally is uncertain, and upcoming Flash PMI data will offer insights into global economic health.

This week is relatively quiet on news this week, with the major headline being the FOMC minutes being released on Wednesday.

GBPUSD continued to drop on Thursday following yesterday’s beat in US ADP data. The overall strength of the USD, as well as expectations that the BoE will hike rates by 25bps today, weighed on Sterling.

Equity futures traded cautiously on Wednesday following an announcement by Fitch that they have downgraded US credit to AA+ ‘stable’ from AAA ‘negative’.

US10Y are back above 4% and pulling the USD with it, unlike the rest
of the market that is being left in its wake.

Central banks around the world adopted cautious tones in the past week, as economic data showed signs of slowing growth.