In this week’s edition of the Weekly Market Review, created in collaboration with the Securities Investors Association Singapore (SIAS), we’re diving into some major movements within the global equity markets.
Be sure to watch our comprehensive video to stay updated on what we’re monitoring in the days ahead.
Weekly Market Review
Macro Update (1:30)
Over the past week, international markets experienced significant downturns. The S&P 500 saw a 2.6% decline, the Dow Jones dropped by 4%, and the Nasdaq fell by 1.4%. Additionally, the Straits Times Index (STI) decreased by 2%.
In its final meeting for the year, the Federal Reserve made a notable decision, announcing its third interest rate cut for 2024. This 0.25% reduction brings the total decrease to 1% since September. Although these cuts were largely anticipated, market reactions were less favorable, stemming from the Fed’s updated outlook for 2025. Initially expecting four more rate cuts, the new forecast only suggests two, sparking some unease among investors.
Further dampening enthusiasm, CME FedWatch statistics now suggest a mere one rate cut for 2025. This has led to shifts in U.S. government bond markets as investors adjust to these changing expectations.
