US Stock Market Record Highs, ECB’s Interest Rate Decision, and UK Inflation Rate

Last Friday, major indices celebrated five straight weeks of gains. The S&P 500 and Dow Jones Industrial Average soared to new record highs, fueled by optimism about the US economy and corporate earnings. On Monday, that positive momentum continued as both indices hit fresh peaks alongside the Nasdaq 100, which reached its highest level since July 2024.

chart

This week, indices may gain additional momentum still, with several key earnings reports scheduled. On Tuesday, we’ll see earnings reports from Goldman Sachs and Citigroup. On Wednesday, Morgan Stanley will announce its results. Rounding out the week, American Express will report on Friday.

The annual UK inflation report, set for release on Wednesday at 09:00, is anticipated to show a decline to 1.9% in September from 2.2% in August. If confirmed, this would mark the first time inflation has fallen below the Bank of England’s 2% target since April 2021. This data could increase pressure on policymakers to cut borrowing costs in their upcoming November meeting.

chart

Meanwhile, the European Central Bank (ECB) is expected to announce its third rate cut this year this Thursday at 15:15. Analysts predict a 0.25% reduction in key policy rates, with markets already pricing in a further cut to 3% by the end of the year as inflation risks continue to recede.

chart

Oil prices plunged on Monday following OPEC’s downgrade of its demand forecast for 2024 and 2025. Market sentiment was further dampened by growing concerns over China’s slowing economy, with oil imports declining for the fifth straight month. On Tuesday, oil prices continued to slide after reports indicated that Israel would not target Iranian oil facilities.

chart

Trade EURUSD with 0.1 pip spread*

Why choose MetaTrader 5 with Top Forex Brokers?

✅ Blazing-fast execution & enhanced stability

✅ 38 built-in technical indicators & 21 timeframes for precision trading

✅ Optimized for all devices—desktop, mobile & web

✅ Trade a wide range of assets: Stocks, Commodities, Forex & more!

Top Forex Brokers

https://www.topforexbrokerscomparison.com