Published 13 September 2024 at 13.18
Economics. Friday morning offered rising asset prices after overnight US inflation and labor market data bolstered expectations that the US Federal Reserve will cut interest rates next week. The price of gold hit an all-time high.
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Many now expect the Fed to announce a 25 basis point rate cut on Wednesday. Some are even hoping for a cut of 50 basis points, and the probability of this scenario has increased to 31 percent from yesterday's 14 percent, according to the CME FedWatch Tool.
Despite a sluggish start to the trading day, stock prices began to rise by midday and continued upward until the close. The S&P 500 rose by 0.75 percent, the Dow Jones increased by 0.58 percent and the Nasdaq climbed by 1.00 percent.
Today's big winner, however, was gold. The spot price of gold surged 1.91 percent and reached a new record level of just under $2,580 per ounce.