Money

The global economy is teetering, so what happens next?

Published

3 years ago

October 5, 2022

Ahron Young

For years, the US economy has been booming. But now, it’s starting to look like that party might be coming to an end.

The reason? The Federal Reserve has been tightening monetary policy, and asset prices are plunging as a result.

Stocks Have Plunged $12 Trillion Since January

The first casualty of the Fed’s policy change has been the stock market. As measured by the Wilshire 5000 all-cap index, stocks have shed $12 trillion of market capitalisation since January. That’s a loss of nearly 30% from the peak. And it shows no signs of stopping any time soon.

Bonds Have Lost 14% of Their Value

Bonds have also taken a beating. Over the past year, bonds have lost 14% of their value, wiping out $7 trillion in market capitalisation. And with interest rates rising, there’s no end in sight for this sell-off either.

Cryptocurrencies Have Vanished $2 Trillion in Market Cap

Cryptocurrencies have been hit particularly hard. After surging to record highs last year, crypto prices have slumped back down to Earth. In the past year, cryptocurrency prices have fallen by more than 50%. That’s wiped out $2 trillion in market capitalisation. And there’s no telling how far prices could fall if the sell-off continues.

House Prices Are Falling Too

Finally, even house prices are starting to come down. They don’t adjust as quickly as other asset prices, but they’re still falling. Mortgage rates have risen to 7%, up from 3% last year. That’s making it harder for buyers to afford homes. As a result, prices are starting to come down.

The US economy has been booming for years now. But that party might be coming to an end—and the reason is the Federal Reserve. By tightening monetary policy, the Fed has sent asset prices plunging and set off a chain reaction that could eventually lead to a recession. So what does this mean for you? Here’s what you need to know…

Money

Stocks rally ahead of Thanksgiving as markets log four days of gains

Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.

Published

2 weeks ago

November 27, 2025

Harvey Vargas

Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.

Markets are moving into the Thanksgiving break with strong momentum, as stocks notch four straight days of gains. The Dow Jones Industrial Average jumped 388 points, while the S&P 500 added 0.9%, pushing both indexes toward their best week since June.

Oracle led major movers, rising more than 4% after Deutsche Bank reaffirmed its bullish outlook on the tech giant. Broad investor optimism continues building across sectors as economic data softens and earnings remain resilient.

All eyes are now on the Federal Reserve and what potential shifts in interest-rate policy may mean for the markets. U.S. markets will close Thursday for the Thanksgiving holiday and reopen Friday for a shortened trading session.

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#Markets #Stocks #Thanksgiving #DowJones #SP500 #Oracle #FederalReserve #FinanceNews

Money

Dow surges 500 points amid rate cut optimism

Dow jumps 569 points on fresh hopes for December rate cut and AI market optimism

Published

3 weeks ago

November 26, 2025

Harvey Vargas

Dow jumps 569 points on fresh hopes for December rate cut and AI market optimism

In Short:
– Dow Jones rose 569 points, reflecting optimism for a Federal Reserve interest rate cut.
– Alphabet’s stock increased as Meta may invest in AI chips, but Nvidia’s declined amid market concerns.

The Dow Jones Industrial Average increased by 569 points or 1.2% on Tuesday, reflecting investor optimism for an upcoming Federal Reserve interest rate cut. The S&P 500 and Nasdaq Composite also posted gains, up 0.8% and 0.4% respectively. This represented a recovery from earlier losses, where the S&P 500 briefly fell by 0.7%.

Markets anticipate an 85% chance of a quarter-point rate cut in December, driven by comments from New York Fed President John Williams, who indicated the possibility of lower rates soon. Investor sentiment strengthened following reports that Kevin Hassett may be appointed as the next Fed chair, potentially resulting in a more lenient monetary policy.

Tech Sector

Alphabet saw its stock rise by over 1% after reports indicated that Meta Platforms might invest in its AI chips. This could signal increased demand for AI technology, benefiting the sector overall. However, Nvidia’s stock fell more than 3%, suggesting concerns about its dominance in the AI chip market.

Investors are also wary of the valuation of tech stocks. Despite recent gains, the S&P 500 and Nasdaq remain down over 1% and 3%, respectively, for November, while the Dow has lost more than 1% this month. The broader market’s performance indicates ongoing scrutiny regarding tech valuations amid changing economic expectations.

Money

Gold prices surge as Central Banks buy big, but risks grow ahead

Gold prices surge as central banks increase demand; risks include a stronger dollar and rising interest rates.

Published

3 weeks ago

November 25, 2025

Harvey Vargas

Gold prices surge as central banks increase demand; risks include a stronger dollar and rising interest rates.

Gold prices are climbing fast as central banks ramp up buying, pushing demand to its highest levels in years. The metal’s reputation as a safe haven is strengthening, especially amid rising geopolitical tensions and global financial uncertainty.

But experts warn the shine could fade. A stronger US dollar and the possibility of rising interest rates may weigh on momentum, making investors question how long the rally can last.

Dr Steven Enticott from CIA Tax breaks down the drivers behind gold’s surge—from ETF inflows to physical bar demand—and what could send the price sharply higher… or lower.

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#gold #markets #centralbanks #economy #finance #investing #interestRates #usdollar