AI, Gold, and the Fed: Unravelling a Turbulent Week

👋 Good Morning Hustlrs

I hope your week is off to a good start and you’ve got a strong coffee in hand. The markets have been busy, with hints from the Fed, some rises and falls in tech, and strong results in commodities

In this update, I’ll keep things light, straightforward, and practical so you can cut through the noise and focus on what really matters for your money.

☕️ QUICK BREW: THIS WEEK’S MARKET PULSE

A choppy week where tech wobbled, the Fed paused, and oil plus gold stole the spotlight.

• 📊 The Fed left interest rates unchanged but hinted at possible cuts if inflation continues to slow.

• 💻 Big Tech had mixed results. Microsoft lost over $350 billion in market value. In contrast, Meta gained about $150 billion 

• 💰 The U.S. dollar fell to its lowest level in 4 years

• 🛢️ Gold plunges about 10% in its worst one-day drop since 1983, silver crashes nearly 30% in its worst day on record

• 🌍 Ongoing political debate about Trump’s interest in Kevin Warsh as Fed chair made investors uneasy.

🔑 THE BIG STORIES

Fed Steady, Cuts Later

The Federal Reserve kept interest rates steady, saying its policy remains restrictive but patient while it looks for more evidence that inflation is under control. Officials hinted at possible rate cuts in the future but did not give a timeline, leaving futures markets uncertain.

Yields moved up and down after the decision, and stocks stayed mostly flat as traders tried to make sense of the Fed’s calm message in an uncertain economic environment.

📌 Why it matters: For you, this means rate cuts are likely a “when, not if” story — supportive for growth assets, but the path there could be volatile. 

AI Giants, Opposite Paths

Quarterly earnings from the “Magnificent Seven” drew attention, but the main difference was between Microsoft and Meta.

Microsoft’s stock dropped after the company announced higher AI spending and reported slower Azure cloud growth. This led to a loss of over $350 billion in market value, one of the largest in U.S. history.

Investors were concerned that spending on AI could hurt profit margins before new revenue appears.

Meta’s stock, in contrast, rose about 10%, adding around $130 to $150 billion in value. The company reported strong results, gave positive guidance, and showed that AI is helping with ad targeting and monetization.

The takeaway is that while both companies focused on AI, the market reacted very differently based on how each executed and their profitability.

📌 Why it matters: If you’re betting on AI through individual stocks, this week reminded you that “AI narrative” isn’t enough — markets care about cash flow and clear payback.

Gold’s Historic Crash

Gold hit record highs but then had its worst one-day drop since 1983, falling about 10% as the dollar rose and speculation faded.

Silver fell even more, dropping nearly 30% in its worst day since at least 1980. Many retail traders who had invested in metals had to sell quickly when margin calls were issued, which exacerbated the decline.

📌 Why it matters: Gold and silver can protect you over the long run, but they can be brutally volatile week to week. If you hold metals via ETFs, size them as a small hedge, not a core position — and never assume “safe haven” means “low volatility.”

💡 WHAT DOES THIS MEAN FOR YOUR INVESTMENTS?

You’ve seen the headlines. Now, let’s turn them into practical steps for your portfolio.

Right now, earnings and growth still support stocks, but market leaders are changing and policy and politics are causing quick, sharp moves.

Here’s what this means for you as an African professional investing around the world.

• Rate cuts create winners and losers. The Fed is cautious but leaning toward easing, which still supports quality growth stocks. However, overvalued companies can drop if their earnings disappoint. Mix growth stocks, like tech and AI leaders through broad ETFs, with some value or dividend investments. This way, no single style will control your portfolio.

• Portfolio balance matters. If a big drop in Microsoft or a crash in gold would seriously hurt your net worth, you have too much in one area. Try to keep each stock or niche investment small, and put most of your money in broad, low-cost ETFs.

• Politics and commodities are important. Volatile metals and a weaker dollar show that big-picture trends and politics still affect markets, especially for African economies that rely on oil or imports. Putting a small amount into energy or commodity ETFs can help protect against these risks.

• Earnings matter. Recent AI results proved that strong execution is more important than hype. Rather than making risky, all-in trades on earnings, use diversified tech or factor ETFs to benefit from the trend without risking too much on one stock.

📝 YOUR WEEKLY HUSTLR PLAYBOOK

👉 Quick checklist for the week ahead:

• Review your portfolio: if one stock or sector is more than 25–30%, trim it.

• Add at least one broad ETF to your watchlist that isn’t tech-heavy (value, dividend, or global).

• Keep an eye on oil and gold — they’re now key signals for inflation and risk sentiment that hit African economies directly.

• Commit to a simple monthly investing habit (dollar-cost averaging into a diversified ETF basket), no matter the headlines.

📅 NEXT WEEK: DATA AND MORE AI DRAMA?

This week, markets will focus on new economic data and another round of earnings reports. Traders will pay close attention to inflation and jobs numbers, which could support or question whether the Fed might start cutting rates later in 2026.

• Key inflation and labor data may change when the market expects the Fed to make its first rate cut.

• Speakers from the Fed and other central banks may share how they feel about a weaker dollar and looser financial conditions.

• Upcoming earnings from major tech companies and banks will reveal if AI spending and current credit trends can continue.

• Keep an eye on energy and metals. If volatility remains high, we may see more shifts between growth, value, and defensive stocks.

• Stay alert for any new developments in the Fed chair process or U.S. politics that could affect global risk sentiment

📣 FINAL SIP

You don’t have to catch every market move to succeed. Stay calm, keep learning, and invest your money wisely across different opportunities. The market can be noisy from week to week, but lasting wealth comes to those who stay patient and keep going.

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DISCLAIMER

This newsletter is for education only and is not personal financial advice. The Global Hustlr team is not a licensed investment adviser, and nothing in this email should be taken as a recommendation to buy, sell, or hold any specific security, asset, or strategy.

All investing involves risk, including the possible loss of principal. Past performance is not a reliable guide to future results, and markets can move in ways that are unexpected or extreme. You are responsible for your own investment decisions and should always do your own research and/or consult a qualified, licensed financial professional before acting on any information shared here.