🗓️ Weekly Market Recap & Outlook

Market Recap - Last Week

The U.S. stock market faced a volatile week driven by Q3 earnings reports, economic data, and anticipation of the Federal Reserve’s upcoming rate decision. Major indices reacted differently; the Dow Jones slipped around 0.3%, while the S&P 500 dropped 0.5%. Meanwhile, the Nasdaq inched up 0.4%, as some large-cap tech stocks, supported by positive earnings, managed to rally despite broader caution in the sector.

Midweek, attention turned to the Federal Reserve’s upcoming November 7 meeting, where it is expected to hold rates steady. Investors widely anticipate the Fed will maintain the current rate range of 5.25%-5.50% as inflation eases and growth steadies. This “wait-and-see” stance from the Fed is expected to bring some relief to investors concerned about further rate hikes.

Economic indicators were mixed. Q3 GDP growth came in at 2.8%, slightly below forecasts but lifted by a strong rise in consumer spending. The labor market showed resilience, with October data revealing the private sector added 233,000 jobs, above expectations, and unemployment remained low. This job strength contrasts with softer growth numbers, sparking mixed reactions on Wall Street.

On the corporate front, earnings from companies like Alphabet, Garmin, and Tesla were strong, lifting discretionary stocks. However, energy stocks such as Exxon Mobil faced challenges amid volatile oil prices linked to geopolitical tensions. The CBOE Volatility Index rose, reflecting ongoing caution as investors monitored the Fed’s next moves and economic data.

Market Outlook - Next Week

The stock market is heading into a potentially bumpy period, with two big events on the horizon: the U.S. presidential election and a Federal Reserve meeting that’s likely to result in an interest rate cut. Elections can shake up markets briefly, but historically, November and December are often good months for stocks as things settle down. With the Fed expected to trim rates by 0.25%, investors are hopeful this will support the economy without fueling inflation.

Certain areas, like tech and healthcare stocks, are positioned to benefit from strong earnings growth. Meanwhile, sectors like energy and materials may face more pressure, but there’s growing interest in value stocks and smaller companies that currently offer solid value. Many analysts recommend staying diversified and even using any short-term election-related dips to add quality stocks to portfolios.

While factors outside the U.S., like shifts in the U.K. bond market, could add some temporary pressure, the Fed’s commitment to gentle rate cuts provides a solid foundation for longer-term stability and growth in the stock market.

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Crypto Market Recap - Last Week

Bitcoin maintained strength in the $63,000–$65,000 range, with market watchers anticipating a possible rally past $73,000. This momentum is being driven by institutional interest, as new spot Bitcoin ETFs continue to draw significant trading volume. These ETFs are boosting Bitcoin’s profile and creating a scarcity effect as more investors buy and hold, hoping for long-term gains.

Political meme coins saw a dramatic spike, with tokens like MAGA and MABA capturing interest during the U.S. election season. Their prices surged significantly, although analysts caution these gains may be temporary. On the Solana network, a viral story about “Peanut the Squirrel” sparked a similar frenzy, leading to rapid price increases for several themed tokens.

Amid these trends, crypto exchanges are tightening standards, as shown by Binance’s report that only a small percentage of token listing applications receive approval. This indicates heightened scrutiny as exchanges seek to balance innovation with regulatory caution.

Broader economic factors also influenced crypto sentiment. Strong U.S. job numbers and inflation concerns could affect Federal Reserve policy, impacting the financial markets that are closely watched by crypto investors. The total cryptocurrency market cap held steady around $2.3 trillion, highlighting continued interest in digital assets despite external economic pressures. With Bitcoin’s position solid and niche markets gaining traction, the crypto landscape remains dynamic and ripe for potential growth as November unfolds.

Crypto Market Outlook - Next Week

Crypto markets are showing promising signs, with Bitcoin recently surpassing $72,000 amid strong institutional interest fueled by Bitcoin ETFs. This surge could continue, with some analysts projecting prices as high as $76,000 or $80,000 if momentum holds steady.

Additionally, meme coins and politically themed tokens, such as TRUMP and KAMA, are seeing significant gains. Their popularity may peak as post-election sentiment drives more activity in these assets. Ethereum is also in focus, with an upcoming update expected to enhance its utility in staking and decentralized finance, potentially increasing demand for the asset.

On a broader scale, anticipated interest rate cuts from the Federal Reserve are seen as favorable for cryptocurrencies by easing liquidity conditions, which can make high-risk assets more appealing. However, retail investors have been somewhat hesitant, meaning larger price jumps may require greater participation from individual traders. Altogether, the market is being shaped by ETF-related inflows, post-election effects, and shifting economic conditions.

Risk Management

• Focus on long-term investing first; trade for passive income once you're experienced.

• You can't consistently time the market, which is why many traders fail.

• Generate passive income by trading stocks that hit buy zones.

• Start with long-term investing, then move to multi-day trades, and with experience, options and day trading.

• Always practice risk management: never go all in on a single play, and have funds ready to average down or for other opportunities.

• Be cautious with options trading; understand the risks before diving in.

• Dollar-cost averaging is key: buy in small increments rather than all at once.

• Avoid using margin until you have significant experience, as it can be very risky.

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