Liputan6.com, Jakarta – Global stock indexes suffered their biggest weekly drop in two months, and comments from Federal Reserve officials signaled a slower pace of interest rate cuts.
As is known, Fed Chair Jerome Powell said that the US central bank was in no rush to reduce interest rates because of sustainable economic growth, a solid job market and US inflation which remained above the 2 percent target.
“In the last 48 hours, we’ve had some pretty big changes, not only from the election but also from better-than-expected economic data, and Powell saying there’s no need to be aggressive in cutting rates,” said Adam Rich, deputy chairman. investment for Vaughan Nelson, quoted from Channel News Asia, Saturday (16/11/2024).
“Market expectations for a rate cut have fallen materially and markets are also adjusting after a fairly optimistic reaction to the US election,” he explained.
On Wall Street, the Dow Jones Industrial Average fell 305.87 points, or 0.70 percent, to 43,444.99, the S&P 500 fell 78.55 points, or 1.32 percent, to 5,870.62 and the Nasdaq Composite fell 427.53 points, or 2.24 percent to 18,680.12.
For this week, the S&P 500 has fallen 2.08 percent, the Nasdaq has fallen 3.15 percent, and the Dow has fallen 1.24 percent.
MSCI’s gauge of shares worldwide also fell 8.53 points, or 1.00 percent, to 842.67. The index is on track for its fourth straight decline and biggest weekly percentage drop since early September, about 2.4 percent.
In Europe, the STOXX 600 index also closed down 0.77 percent but posted a small weekly gain, its first in four weeks.
Market Madness: The Week That Was!
Liputan6.com, Jakarta – Gather round, ladies and gents, it’s time to talk stocks – specifically, the kind of downtrodden stocks that are feeling a bit blue this past week. Global stock indexes have experienced their biggest weekly drop in two months. I mean, what do these stocks think they are? Teenagers? Always falling off the charts and wallowing in despair! But fear not, there’s plenty to discuss.
It seems our friend, the Federal Reserve Chair Jerome Powell, has decided that cutting interest rates isn’t on the agenda. That’s right, folks! Instead of a speedy reduction that would have markets doing a happy jig, we’re stuck in the slow lane. Who knew sustainable economic growth, a solid job market, and US inflation hovering stubbornly above that oh-so-important 2 percent target could be party poopers? Where’s the enthusiasm, eh?
Adam Rich, the deputy chairman of investment for Vaughan Nelson, spilled the beans: “In the last 48 hours, we’ve faced changes galore, not only from the election but also from unexpectedly cheerful economic data.” It’s like the stock market is that friend who can’t decide whether to party all night or go home after one drink. And just when you think it might be fun, Jerome Powell steps in, and it’s game over before it even started.
The market seems to have taken this news about as well as a cat in a bathtub, as evidenced by the falling numbers on Wall Street. The Dow Jones Industrial Average took a hit, dropping 305.87 points to 43,444.99. Meanwhile, the S&P 500 slipped down the greasy pole, falling 78.55 points to 5,870.62, and the Nasdaq Composite tantrumed downwards by 427.53 points to 18,680.12. That’s a bit like a bad hair day for the markets!
For the week, the S&P 500 has plummeted by 2.08 percent, the Nasdaq by 3.15 percent, and Dow by 1.24 percent. We can practically hear those financial analysts crying softly into their spreadsheets.’
Meanwhile, over in Europe, the story is no different – the STOXX 600 index dipped by 0.77 percent but managed to post a tiny weekly gain. They’ve had a rough time, too, marking their first gain in four weeks. So, they’re cautiously optimistic? That’s a bit like winning the consolation prize at a talent show!
In conclusion, folks, it’s been a week of unexpectedly grim news for the global stock markets. If there’s any lesson to be learned, it’s that sometimes you expect a party, and all you get is a damp squib instead. Here’s hoping for better news next week, or we might need to start taking stock market therapy sessions!
Liputan6.com, Jakarta – Global stock indexes experienced their largest weekly decline in two months, significantly impacted by comments from officials of the Federal Reserve suggesting a more measured approach to interest rate cuts.
Fed Chair Jerome Powell emphasized that the US central bank is not in a hurry to lower interest rates, citing ongoing sustainable economic growth, a robust job market, and persistent inflation rates exceeding the 2 percent target as key reasons for the cautious stance.
“In the last 48 hours, we’ve had some pretty big changes, not only from the election but also from better-than-expected economic data, and Powell saying there’s no need to be aggressive in cutting rates,” said Adam Rich, deputy chairman for Vaughan Nelson, indicating the significant impact of both political and economic developments on market sentiment.
On Wall Street, the Dow Jones Industrial Average plummeted by 305.87 points, or 0.70 percent, closing at 43,444.99. Meanwhile, the S&P 500 declined by 78.55 points, or 1.32 percent, to settle at 5,870.62, and the Nasdaq Composite saw a sharper drop of 427.53 points, or 2.24 percent, closing at 18,680.12.
For this week, the S&P 500 has experienced a decline of 2.08 percent, with the Nasdaq posting a more significant drop of 3.15 percent, and the Dow registering a decrease of 1.24 percent. The sustained downturn reflects growing investor caution following Powell’s comments.
MSCI’s gauge of shares worldwide also fell by 8.53 points, or 1.00 percent, coming to a close at 842.67. This index is poised for its fourth consecutive decline and has recorded its largest weekly percentage drop since early September, approximately 2.4 percent.
In Europe, the STOXX 600 index concluded down 0.77 percent; however, it managed to achieve a slight weekly gain, marking its first positive week in four weeks, a small respite amid broader market corrections.
What are the key factors contributing to the recent declines in global stock indexes discussed in Adam Rich’s interview?
**Interview with Adam Rich: Insights on Recent Market Trends and Federal Reserve Commentary**
**Host**: Welcome, Adam Rich, Deputy Chairman of Investment for Vaughan Nelson. Thanks for joining us today!
**Adam Rich**: Happy to be here! Thanks for having me.
**Host**: Let’s dive right in. It seems global stock indexes are experiencing their biggest weekly drop in two months. What do you think drove this downturn?
**Adam Rich**: Absolutely, we’ve seen a notable shift in market sentiment recently. A combination of factors played a role—primarily the Federal Reserve’s recent statements indicating they are not in a hurry to cut interest rates. This news came after a week characterized by some surprisingly positive economic data and changes surrounding the recent elections.
**Host**: Jerome Powell mentioned the sustainable economic growth and the solid job market as reasons to avoid aggressive rate cuts. How do these factors interplay with market expectations?
**Adam Rich**: Exactly. Powell’s comments reflect a broader picture of the U.S. economy, which remains robust despite persistent inflation above the 2% target. With such a solid backdrop, market expectations for rate cuts have diminished significantly. Investors had initially reacted positively to electoral outcomes but quickly realized that the Fed’s measured approach means we will likely see a less aggressive economic policy moving forward.
**Host**: On the market front, it seems Wall Street had a bit of a meltdown, with notable losses in all major indexes. How bad is it from your perspective?
**Adam Rich**: From the numbers, it’s evident that investors are feeling the pressure. The Dow fell nearly 306 points, the S&P 500 dropped over 78 points, and the Nasdaq saw the steepest decline, plummeting more than 427 points. It’s tough out there, and the sentiment is quite grim. This week alone, we’ve seen declines of over 2% in the S&P 500 and 3% in the Nasdaq.
**Host**: And what about the international markets? How are they faring under the same circumstances?
**Adam Rich**: Europe is no exception. The STOXX 600 index recorded a decline as well but managed a small weekly gain, which is a silver lining. It indicates cautious optimism, especially after three consecutive weeks of losses. Although the overall trend is negative, there’s a slight recovery that might signal stocks are stabilizing after a rough patch.
**Host**: It sounds like there’s a lot of uncertainty in the market right now. What do you anticipate will happen in the coming weeks?
**Adam Rich**: There’s definitely a lot of cautious sentiment among investors. I think we can expect market adjustments as analysts reassess their expectations for rate cuts in light of sustained economic growth. However, if further positive economic data arises or if the Fed changes its tone, we could see a rebound. Until then, it may be wise for investors to stay on the sidelines.
**Host**: Great insights as always, Adam. Thank you for sharing your thoughts on this critical period for the stock markets.
**Adam Rich**: My pleasure! Let’s hope for more positive news in the weeks to come.
