NAGA Weekly Recap March 18 - 2024 – March 22 - 2024

This week has been bustling with significant financial market movements, capturing the attention of investors worldwide.

From record-breaking performances on Wall Street to the highly anticipated public debut of Reddit, there's no shortage of pivotal moments. We also witnessed gold prices soaring to new heights, indicating a shift towards safe-haven assets amid ongoing economic uncertainties. Additionally, the forex markets saw notable fluctuations, particularly with the GBP/USD pair, as it rebounded from a recent dip.

Here's a closer look at these key events.

Stocks jump to new highs as Fed buzz lifts markets

Stocks on Wall Street reached new record highs on Thursday, as investors felt relieved by the Federal Reserve's announcement. The Fed indicated it would delay rate cuts, keeping the interest rate at 5.50%, with no changes expected until at least May.

The S&P 500 went up by 0.5% to over 5,250 points. The Dow Jones added about 300 points, also up by 0.5%, getting closer to 40,000 points. The Nasdaq increased by 0.6%.

This jump in stock prices came after the Federal Reserve calmed fears on Wednesday, saying it still plans to cut rates three times in 2024, even though inflation remains high. This decision pushed stock indexes to their highest ever.

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Reddit stock soars in highly anticipated market debut

Reddit, the popular online discussion site, saw its stock price jump on its first day on the New York Stock Exchange. Starting at $47, the shares surged about 60% to hit over $53 shortly after trading began. This was a strong opening, especially since the initial price was set at $34 per share.

This event marked a significant moment as Reddit went public, the first big social media move like this since Pinterest in 2019. The interest in Reddit's debut was high, partly because there haven't been many companies going public in the last couple of years.

Founded in 2005, Reddit became widely known in 2021 during the meme stock phenomenon. That's when users on its WallStreetBets forum drove up prices of stocks like GameStop and AMC by organizing buying against short sellers.

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Gold price tops $2,200, setting new record

Gold finally surpassed $2,200 an ounce for the first time after the US Federal Reserve indicated that it would press ahead with three rate cuts in 2024 despite elevated inflation.

Gold’s latest rally, which started mid-February, is underpinned by longstanding tailwinds including heightened geopolitical risks and increased central bank buying. This month alone, the safe-haven metal hit new highs on five occasions.

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GBP/USD slumps below 1.2700 after BoE decision

In a notable reversal, the British Pound recovered from its fall beneath the 1.2700 level against the US Dollar. This shift was largely due to the widespread selling pressure on the US Dollar, prompting the GBP/USD pair to hover just below the 1.2800 mark as investors and traders look forward to the Bank of England’s (BoE) upcoming policy announcements.

Adding to the market dynamics, the Federal Reserve (Fed) maintained its policy rate within the 5.25%-5.5% range, a decision that was in line with market expectations. Furthermore, the Fed’s revised Summary of Economic Projections, commonly referred to as the dot plot, indicated that the policymakers are still anticipating a 75 basis point reduction in the policy rate by 2024, unchanged from their December forecast.

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 This concludes our weekly recap. Have a great weekend and see you next week! 👋