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Index Update - US stocks were up on Monday: S&P 500 +0.3%, Nasdaq +0.5%, and Dow Jones rising nearly 70 points after a slow start. Investors are eyeing the Fed's expected 25bps rate cut & updated economic projections, especially for 2025. Strong growth in services led S&P Global Flash PMIs, while manufacturing downturn deepens.

Market Movers – Broadcom surged nearly 10%, now a $1T company. MicroStrategy up 3%, joining Nasdaq. Honeywell rose 3.2% amid potential aerospace unit sale. Nvidia slipped 1.7% to $131.8.

Commodities Update –  WTI crude oil fell towards $70/barrel on Tuesday as concerns over weakening global demand grow. China’s weak economic data adds uncertainty, fueling fears of reduced consumption from the world’s largest crude importer. Combined with oversupply fears, this outweighs geopolitical tensions in Russia & the Middle East. Traders are also eyeing the Fed’s upcoming policy meeting, where a 25bps rate cut is expected, potentially boosting oil demand. Gold dropped to ~$2,640/oz as investors await the Fed's decision & outlook for 2025, while silver faced pressure amid weaker demand from China.

Futures Update - US stock futures were little changed on Tuesday as investors await the Fed’s policy decision. On Monday, the Dow dropped 0.25%, marking its longest losing streak since 2018, while the S&P 500 rose 0.38%, and the Nasdaq surged 1.24%, hitting new all-time highs. Tesla (+6.1%) and Broadcom (+11.2%) led Nasdaq’s gains, with Broadcom reaching a $1T market valuation. Apple (+1.2%) & Alphabet (+3.5%) also hit new highs. Nvidia fell 1.7%. The Fed is expected to cut rates by 25bps on Wednesday, with all eyes on the 2025 outlook.

Macro Update - The UK’s unemployment rate remained at 4.3% from August to October 2024, matching expectations and staying at its highest level since May. The increase in unemployment was driven by a rise in those unemployed for over 6 months.  Employed individuals grew by 173K to 33.77M, with gains in full-time workers, the self-employed, and those with second jobs (3.7% of all employed). Economic activity rate remained steady at 21.7%.

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Following a disappointing performance last Friday, stocks generally rose during Monday's trading session, with the tech-focused Nasdaq leading the way to achieve a new record closing high. Although the Nasdaq retreated slightly from its peak prior to the close, it still finished the day up by 247.17 points, or 1.2 percent, at 20,173.89. The S&P 500 also experienced an increase, climbing 22.99 points, or 0.38 percent, to end at 6,074.07. From a technical standpoint, the S&P 500 is currently within an upward trend channel, suggesting the possibility of further gains. Additionally, the 14-period Relative Strength Index (RSI) remains in a favorable range. Key levels to watch include resistance at 6,125 and support at 6,010.

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