As Gold Rises, Stocks Remain Close to Record Highs – Europe Market Wrap
US markets are nearing all-time highs ahead of the Christmas holiday, as a seasonally good period for equities begins. Gold rose beyond $4,500 per ounce.
Futures on the S&P 500 were barely changed after technology shares lifted the index to a record, with Wednesday’s trading expected to be modest due to shortened holiday hours. Traders remain optimistic that the year will conclude on a high note as the Santa Claus Rally begins, perhaps adding to the US benchmark’s roughly 17% gain this year.
Investors are encouraged by the US economy’s continued outperformance, which bodes well for earnings projections in the coming year. At the same time, money markets still expect at least two Fed rate cuts in 2026, which may boost a broader variety of stocks even as valuation concerns linger over pace-setting tech firms.
The Dollar plummeted for a third day, bringing its year-to-date losses to 8.4%, the most since 2017. US Treasuries were barely changed, with the 10-year yield at 4.16%.
Gold and silver extended their record-breaking rise as tensions in Venezuela heightened haven demand. Expectations for rate cuts also helped non-yielding assets. Platinum reached an all-time high before retreating.
