US stocks on fire 🔥

Good Morning Hustlrs,

Welcome to another edition of your weekly shot of global money moves, market insights, and actionable tips—specially brewed for African Investors looking to build wealth in the US stock market. 

Here’s what we got for you today:

☕️ Quick Brew: This Week’s Market Pulse

• US stocks are on fire! The S&P 500 and Nasdaq just hit new all-time highs, powered by excitement around AI and hopes for friendlier interest rates.

• Geopolitical drama: A US strike ended a 12-day war in the Middle East. Iran’s response? More bark than bite, aiming to save face without escalating.

• Trade wars cool down: The US and China finally inked a trade agreement, easing some global jitters.

• Gold slips, oil wobbles: Gold prices dipped as investors shifted back to stocks, while oil remains under pressure from oversupply and OPEC+ policy shifts.

• Fed stays cautious: Jerome Powell told Congress the Fed isn’t rushing to cut rates, watching how tariffs and inflation play out.

• Tesla’s robotaxis roll out: The company’s autonomous vehicles hit Austin, sending shares higher on future potential.

Let’s break down what this all means for you—and your investment journey.

☕️The Big Stories

1. US-Iran Tensions: War Ends, Markets Breathe

A US strike wrapped up a tense 12-day conflict between Israel and Iran. Iran’s response was measured, signaling it doesn’t want a bigger fight.

This ceasefire, brokered by the US, helped calm global markets and sent oil prices on a rollercoaster.

2. S&P 500 & Nasdaq Hit Record Highs

Despite recent volatility, the S&P 500 and Nasdaq have rebounded to fresh records, fueled by renewed AI optimism (thanks, Nvidia and Micron!) and the possibility of lower interest rates soon.

3. Gold Drops, Oil Faces Headwinds

• Gold: Investors moved out of gold and back into stocks, causing gold to dip slightly to $3,368/oz.

• Oil: Prices are under pressure as OPEC+ boosts output and global supply outpaces demand. Fitch now forecasts oil at $65/barrel for 2025, down from $70.

4. US-China Trade Agreement

After months of tension, the US and China signed a trade deal, pausing tariff hikes and promising smoother flows for key goods—especially rare earths crucial for tech and EVs.

5. Powell’s Congressional Testimony

Fed Chair Jerome Powell told Congress the Fed isn’t in a hurry to cut rates. He wants to see how the new tariffs and inflation numbers shake out before making any moves.

6. Tesla’s Robotaxis Debut

Tesla launched its robotaxi service in Austin. The market cheered, betting big on the future of autonomous vehicles and the company’s growing network effect.

Why Does This Matter?

• For African investors: These global shifts directly impact your US stock investments. When US markets rally, your portfolio likely benefits. But volatility from geopolitics or trade wars can also mean sharp drops.

• Tech stocks are leading: AI and automation are driving the US market. Companies like Nvidia, Micron, and Tesla are at the center of this boom.

• Oil and gold: If you hold ETFs or stocks linked to commodities, know that oil’s oversupply and gold’s decline could affect returns.

• Interest rates: The Fed’s caution means borrowing costs stay higher for longer. This can slow economic growth but also keeps inflation in check.

What Could Happen Next?

• Stock rally—can it last? With markets at record highs, some analysts warn of a potential bubble. If earnings disappoint or rates stay high, a correction could follow.

• Trade peace or more battles? The US-China deal is a relief, but details are thin. Any sign of renewed tension could jolt markets.

• Fed’s next move: If inflation cools and trade tensions ease, a rate cut could come later in 2025, boosting stocks further.

What You Can Do

• Diversify: Don’t put all your eggs in one basket. Mix tech, energy, consumer, and global ETFs to spread risk.

• Stay informed: Follow market news and understand how global events affect your investments.

• Think long-term: Short-term swings are normal. Focus on your goals and avoid panic selling.

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Until next week, keep hustling smart.

— The Global Hustlr Team