Stock Market Volatility and Market Sentiment

Stocks experience late-week comeback after volatile sessions, displaying signs of exhaustion following a torrid rally. Market reacts to Fed rate cuts and Bank of Japan's actions, with tech sector leading the charge. Fear gauge subsides after reaching unprecedented levels. Former Treasury Secretary urges investigation into VIX surge. Stock-bond ratio signals potential market sentiment and future returns.

Gold Price Surge and Factors Driving It

Gold steadied after hitting a record high, fueled by bets on Fed rate cuts and uncertain US political outlook. Traders anticipate earlier, deeper rate cuts and increasing signs of cooling inflation. Gold has surged nearly 20% this year, supported by central bank purchases and geopolitical tensions.

U.S. Stock Market Performance in 2024

U.S. stocks have been performing well in 2024, but concerns about inflation, economic growth, and corporate earnings are looming. Analysts warn of potential market correction due to stretched valuations and optimistic sentiment. Investors are closely watching Fed rate cuts, presidential election uncertainty, and market breadth. Earnings estimates are improving, but valuations are rising faster. Inflation and growth data will influence Fed's rate decisions. Important data points include PCE price index and GDP growth. Market rally needs broader participation for sustainability.