Market Matters – Not a complete Warsh-out!

Markets focused on how well companies are turning investment into real earnings, with Microsoft punished for heavy AI spending and slower margin payback, while Netflix was rewarded for clearer links between spending, subscriber growth and profitability.

The Fed meeting offered little new information, but Kevin Warsh’s nomination as Powell’s expected successor mattered more, signalling a potentially more growth‑friendly and productivity‑focused Fed stance that could support risk assets if inflation stays on track.

US consumer confidence fell sharply to its weakest level since 2014, with concerns about prices, jobs and geopolitics rising across households — especially among middle‑aged and higher‑income groups — creating a cautionary signal even though actual spending has held up.

Gold and silver saw sharp late‑week sell‑offs, mainly due to CME margin hikes that forced leveraged traders to cut positions. The move looked technical rather than fundamental, with no meaningful spillover into other asset classes.

Europe surprised modestly on the upside, with better‑than‑expected growth helping steady equities. The coming week brings a busy slate of major earnings and key macro data, particularly US labour‑market reports and European inflation and industrial production.