Euro’s Bullish Momentum Shows Cracks as French Risks Resurface

This week, rate-sensitive stocks, particularly in the airline and trucking sectors, experienced significant gains as investors anticipate potential interest rate cuts by the Federal Reserve. This optimism has driven stock prices closer to record highs, reflecting a positive sentiment in the markets.

Stocks have risen as investors anticipate potential interest rate cuts by the Federal Reserve, marking a positive shift in market sentiment. The U.S. dollar, however, is on track for a second consecutive weekly loss, reflecting growing concerns about the Fed's monetary policy direction.

US stocks recorded modest gains as investors reacted positively to an uptick in consumer sentiment, indicating a potential recovery in spending behavior. This development comes as market participants prepare for an anticipated interest-rate decision from the Federal Reserve next week.

The U.S. dollar has slipped lower ahead of the key Personal Consumption Expenditures (PCE) release, while the euro is nearing a three-week high. This movement reflects ongoing market adjustments as investors prepare for significant economic data that could influence monetary policy decisions.

Meta has announced a strategic shift, reallocating some of its investments from the metaverse to the development of AI smart glasses, as the company struggles to convince investors of the metaverse's viability. This decision comes amid a broader trend of reduced spending on metaverse initiatives, with reports indicating a potential cut of up to 30% in related expenditures.