To The Moon

Overall Markets

Global equities ended mixed as central banks dominated investor focus. The Federal Reserve’s decision to resume interest rate cuts propelled US stocks to fresh record highs, while European shares followed higher on policy optimism. Asian markets, however, showed divergence as concerns about China’s growth and US labor weakness capped gains.

US: Fed Cuts Fuel Record Rally

The Dow Jones $DJIA(.DJI)$  rose 124.10 points (+0.2%) to 46,142.42, the S&P 500 $S&P 500(.SPX)$  gained 31.61 points (+0.4%) to 6,631.96, and the Nasdaq Composite $NASDAQ(.IXIC)$  jumped 0.9%. Markets cheered the Fed’s renewed easing cycle and Powell’s hints of further cuts, boosting investor appetite for risk assets.

Europe: Policy Optimism Lifts Sentiment

European equities advanced as traders assessed both the Fed’s dovish pivot and the Bank of England’s updates. Germany’s DAX led with a 1.3% surge, France’s CAC 40 added 0.8%, and the UK’s FTSE 100 rose 0.2%, suggesting resilience amid mixed economic signals.

Asia: Divergence Amid Fed Uncertainty

Asian markets were uneven. Japan’s Nikkei climbed 1.1% on a weaker yen and optimism over rate cuts. In contrast, Hong Kong’s Hang Seng $HSI(HSI)$  slipped 1.3% and China’s Shanghai Composite dropped 1.1%, as investors remained cautious over slowing Chinese growth and Fed policy uncertainty.

Outlook and Insights

Markets are poised for further volatility as central banks remain in focus. While the Fed’s dovish stance supports risk assets, lingering concerns over global growth, particularly in China, may cap upside momentum. Near term, US equities may continue to benefit from liquidity support, but investors should brace for uneven performances across regions.