GREY BRIEFING #10: New all-time highs – will the rally continue until the Fed meeting?

Welcome back to the tenth GREY BRIEFING! The first week of October once again brought new all-time highs on the US stock markets. Despite the ongoing government shutdown and the lack of labor market data, the indices remained surprisingly stable. The Dow and S&P gained around +1.1% in some cases, while the Nasdaq even rose by +1.3%. The tailwind came primarily from continued high expectations of imminent interest rate cuts by the Fed and massive capital inflows into equity funds, which reached their highest level in almost a year. While optimism prevails in the US, the German market remained calm due to the public holiday on October 3, and in Europe, too, it was primarily...