In the past week, the global economic landscape has experienced a series of significant events that have influenced market dynamics. U.S. markets rebounded strongly, with major indexes recovering from previous losses. Notably, smaller-cap indexes outperformed their larger counterparts, and the S&P 500 equal-weighted index surpassed the traditional version, indicating a shift in market strength towards smaller companies. Bitcoin has also marked its third consecutive week of double-digit gains, reflecting growing investor interest. [a9ffac8f]
NVIDIA reported Q3 earnings that met expectations; however, cautious guidance for Q4 tempered enthusiasm among investors. Meanwhile, positive labor market data emerged, with initial jobless claims falling to 213,000, the lowest level since April 2024. Additionally, existing home sales showed a year-over-year increase for October, suggesting resilience in the housing market. The Federal Reserve's final meeting of the year is anticipated to provide further insights into monetary policy direction. [a9ffac8f]
Across the Atlantic, European markets exhibited mixed performance, with the STOXX Europe 600 rising by 1.06%. In the UK, inflation rose to 2.3% in October, prompting discussions about potential impacts on monetary policy. Japan's Nikkei 225 Index fell by 0.93%, while the Japanese government approved a substantial economic package worth USD 250 billion to stimulate growth. Conversely, China's Shanghai Composite Index dropped by 1.91%, reflecting ongoing economic challenges in the region. [a9ffac8f]
In a notable development, Spirit Airlines filed for bankruptcy, highlighting ongoing struggles within the airline industry. The mixed global market performance underscores the complexities of the current economic environment, with U.S. stocks rebounding amid resilient economic data while other regions face varied challenges. [a9ffac8f]