Don’t expect a rate cut

The Nasdaq 100’s technology stocks wrapped up their fourth consecutive week in the red, marking the most dismal stretch and sharpest declines since late 2022, as investors opted to pocket profits amid mounting concerns over inflation and geopolitical tensions.

On Friday, Israel responded to Iranian attacks from the preceding week, adding another layer of uncertainty to the volatile situation in the Middle East, despite widespread international calls for de-escalation.

On Wednesday, Fed Chair Jerome Powell firmly shut the door on rate cuts, citing lack of confidence in progress on inflation. This stance pushed two-year Treasury yields to 5%, their highest level since November 2023.

Against this tumultuous backdrop, gold prices notched their fifth consecutive week of gains, marking their lengthiest streak since August 2020.

Debt sustainability concerns

Gita Gopinath, International Monetary Fund deputy chief, voiced concerns over the U.S. national debt, stressing the need to reduce the federal deficit, which equals 7% of GDP. Projections indicate the U.S. deficit will remain above 6% through 2029, pushing the debt-to-GDP ratio to 134%.