Market Shifts and Precious Gains: A New Year's Economic Outlook

U.S. stock markets saw fluctuations after opening, with the Nasdaq buoyed by semiconductor strength and precious metals continuing their rally. The year began with heavy focus on monetary policy, geopolitical tensions, and AI investments, affecting market trends. Precious metals saw significant gains driven by various global factors.

After the opening bell on Friday, U.S. stocks experienced volatility, with the Nasdaq holding onto gains due to semiconductor sector strength while precious metals extended their impressive rally. The major indexes appeared set to extend a four-day losing streak, as investors ended the holiday-shortened week with an eye on the upcoming year's potential economic shifts.

With major U.S. indexes poised to post losses for the week, market observers are closely monitoring the monetary strategy as Jerome Powell nears the end of his term as Federal Reserve chair. Delayed economic indicators could pave the way for critical policy decisions as the country navigates new geopolitical challenges and anticipates the impact of midterm elections and ongoing global tensions.

Meanwhile, precious metals like gold and silver kicked off 2025 with robust gains, seeing their best rise in decades, driven by a mix of Fed's rate cuts and geopolitical issues. Continuous geopolitical concerns have fueled interest in these safe-haven assets, as markets adjust to the evolving economic landscape.

(With inputs from agencies.)