US stocks continued the post-Fed meeting bounce on Friday: US stocks closed up on Friday to record their best week since early November 2022 after the Federal Reserve’s decision last week reignited investor confidence, the Financial Times wrote.

The Fed on Wednesday left interest rates unchanged for the second consecutive meeting, pushing investors to believe that it has reached the end of its aggressive tightening cycle, which has pushed rates to 22-year highs. The S&P 500 and Nasdaq 100 both gained c. 6% last week, recording their best weekly performance all year long, Bloomberg reported. This comes after a couple of tough months for US stocks, which pushed both the S&P 500 and Nasdaq Composite into correction. Investment-grade and junk bonds also saw increases, a welcome sign after a particularly tough year for bonds.

Stocks rise, yields fall. Investors ditched their government debt in favor of stocks, pushing the yields on US government debt down 25 bps for the week, marking their biggest weekly drop since March. This comes less than two weeks after the rate on the 10-year note hit a 16-year high.

EGX30

22,640

+0.9% (YTD: +55.1%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

10,853

+0.4% (YTD: +3.6%)

ADX

9,510

+0.3% (YTD: -6.9%)

DFM

3,930

+0.4% (YTD: +17.8%)

S&P 500

4,358

+0.9% (YTD: +13.5%)

FTSE 100

7,418

-0.4% (YTD: -0.5%)

Euro Stoxx 50

4,175

+0.1% (YTD: +10.0%)

Brent crude

USD 84.89

-2.3%

Natural gas (Nymex)

USD 3.52

+1.2%

Gold

USD 1999.20

+0.3%

BTC

USD 34,830.92

+0.6% (YTD: +110.8%)

THE CLOSING BELL-

The EGX30 rose 0.9% at Thursday’s close on turnover of EGP 2.9 bn (20.4% above the 90-day average). Foreign investors were net sellers. The index is up 55.1% YTD.

In the green: Qalaa Holdings (+7.6%), Juhayna (+5.6%) and CIRA Education (+3.8%).

In the red: AMOC (-2.0%), Abu Qir Fertilizers (-1.1%) and Credit Agricole (-1.0%).

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