U.S. Stocks Hit Record Highs as Gold Crashes Below $4,000

Market Overview

Investor sentiment surged overnight as easing global trade tensions and expectations for another Federal Reserve rate cut this week fueled risk appetite. All three major U.S. equity indexes closed at record highs, with the S&P 500 posting its strongest three-day rally since May. Tech shares led the advance ahead of earnings season—Tesla jumped over 6%, while semiconductor stocks broadly gained, with Qualcomm soaring more than 11%.

Long-term Treasury yields fell across the curve, with the 10-year yield sliding back below 4%. The U.S. dollar edged down 0.16%, while the Chinese yuan posted its largest two-month gain. Commodity markets showed a clear divergence: gold plunged 3.2%, breaking below the $4,000 mark amid fading safe-haven demand, whereas London copper surged 1.2% to a record close above $11,000 per metric ton—its first-ever finish above that threshold.

Hot Topics Ahead

● IMF warns: U.S. debt-to-GDP to soar past 143% by 2030

According to the IMFs latest projections, U.S. government debt as a share of GDP is expected to climb by more than 20 percentage points from current levels to 143.4% by 2030, surpassing the pandemic-era peak. In contrast, Italy and Greece are projected to reduce their debt ratios over the same period. While the U.S. benefits from its global reserve currency status and stronger borrowing capacity, the IMF emphasized that such a sharp rise marks a critical inflection point in fiscal sustainability.

● OPEC+ signals modest output increase

The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to gradually restore a portion of crude production in December, according to the group‘s baseline scenario ahead of this weekend’s ministerial meeting. Members are likely to discuss a third consecutive monthly increase of 137,000 barrels per day, with the final decision set to be made during the November 2 virtual conference.

Key Events to Watch

21:00 GMT+8 – U.S. August FHFA House Price Index (MoM); U.S. August S&P/Case-Shiller 20-City Composite Home Price Index (YoY)

22:00 GMT+8 – U.S. October Conference Board Consumer Confidence Index; U.S. October Richmond Fed Manufacturing Index