U.S. stocks returned to positive territory, powered by long-anticipated U.S. election results and the second rate cut in the Federal Reserve’s (Fed) monetary easing cycle. European stocks closed the week lower, struggling amid lackluster corporate earnings and heightened tariff concerns, while Asia ended the week higher on Chinese stimulus hopes ahead of Friday’s National People’s Congress (NPC) announcement. Treasury prices ended higher despite fluctuating yields throughout the week, while U.S. election results rippled across global currency markets as the dollar rallied.

Stock Index Performance

The 2024 U.S. presidential election has now concluded with Donald Trump emerging victorious over Democratic candidate Kamala Harris. As the dust settles on this hotly contested race, financial markets are responding to the outcome and its potential implications for the economy and various sectors. Let's examine the top five takeaways from yesterday’s news in no particular order.

Currencies

The U.S. dollar (USD) saw its best day since 2022, gaining post-election momentum as growth and inflation expectations rose. A surge in U.S. Treasury yields increased the attractiveness of the USD versus major global currencies.

Key Points

- The latest retail sales figures rose 0.4%, month over month, creating somewhat of a blowout report.
- Jewelry store sales are running hot, with above-trend annual growth for the last five months as consumers are clamoring for precious metals.
- Restaurant spending rebounded in September, illustrating a consumer with an appetite for eating out.
- But there are important insights we find when looking under the hood as spending was supported by a specific cohort.
- High-earning millennials are bolstering retail sales as other cohorts struggle.

High Demand for Jewelry

Consumer spending on jewelry took a sha

The big banks officially kicked off third-quarter earnings season last Friday. At a high level, results have been good enough to drive the broader banking space to year-to-date highs. The return of animal spirits in deal making has been a major theme as investment banking revenue surged across most major banks. A jump in asset management fees, better-than-expected sales and trading activity, and improving net interest income outlooks have been other key themes of the reporting season thus far.

Management also appears constructive on the economic backdrop. According to JPMorgan Chase’s (JPM) Chief Financial Officer, Jeremey Barnum, th