2025-09-08 22:03
publication
2025-09-08 22:03
On Monday, on financial markets, it brought a rarely seen phenomenon. On the same day, new records were established by both the NASDAQ technology companies and the “barbaric relic” valued in USD.
Nasdaq Composite ended the day at 21,792.05 points, gaining 0.43% compared to the Friday reference rate. This is a new record of all time, slightly exceeding the Friday peak. From the beginning of the year, this stock market benchmark dominated by the shares of large technology companies gained 12.9%.
Only slightly below last week's records the S & P500 finished, which, having gained 0.21%, registered at an altitude of 6,495.15 points. and increased this year's rate of return to over 10%. The industrial average of Dow Jones, which grew by 0.25% on Monday and remained above 45,500 points, remained near the historic peaks.
The increase on Wall Street has recently been based on “foundations” in the form of growing opportunities to resume a series of loosening monetary policy by a federal reserve. The term market is absolutely sure that next week, the FED will reduce federal funds by at least 25 base points. Scenario setting up a cut by up to 50 pb. It is valued at almost 12% – according to the Fedwatch Tool calculations. By the end of 2025, “at prices” there is a reduction in the rate of federal funds by 75 PB.
Market interest rates measured with Treasuries profitability also go down sharply. The profitability of uncle's 2-year bonds dropped to 3.5% and almost leveled the local minimum from the April “customs panic”. This means that investors expect much lower than current interest rates in the horizon of the next few quarters. And this increases the current value of the expected future profits of companies and in this way increases the model valuation of shares. In addition, the latter become relatively more attractive than papers bringing constant income.
– ATTENTION is the next Wednesday cutting feet in Feda. The market is greedy. He has already discovered a 25-point reduction. But now people are buying because they expect 50 points, which I think will not happen – warned Jake Dollarhide, head of Longbow Asset Management cited by the Reuters agency.
The same factor – that is, waiting for the “aggressive” cycle of foot reductions in the federal reserve – reduces the dollar quotation and increases the valuation of gold. On Monday, the royal metal course reached a record 3685 USD for the Trojan ounce. The American dollar has never been so weak in relation to gold. The latter from the beginning of 2025 gained almost 40% to USD! If such a level was maintained by the end of the year, it would be the highest annual rate of return on 46 years.
KK
