U.S. Equities Rebound on Dovish Fed Remarks, but Nasdaq Logs Third Straight Weekly Decline

Market Overview

U.S. equities rebounded on Friday after dovish comments from senior Federal Reserve officials helped calm market nerves, lifting all three major indices by at least 0.9% intraday. However, on a weekly basis, the market still posted losses of nearly 2%, with the Nasdaq notching its third consecutive weekly decline.

Among individual names, Alphabet surged more than 3% to a fresh all-time high, up over 8% for the week. Eli Lilly gained more than 1% to hit a record high as well, becoming the first healthcare company to surpass a $1 trillion market cap. Nvidia, meanwhile, remained volatile and ended the week down nearly 6%.

U.S. Treasury prices climbed sharply following dovish remarks from the Fed‘s “third-in-command,” pushing yields to their lowest levels this month. The U.S. Dollar Index extended its strength to a six-month high, while the Japanese yen reversed losses after Japan’s finance minister warned of potential FX intervention.

In crypto markets, a broad liquidation triggered a steep selloff, with Bitcoin plunging below $81,000—its lowest level in seven months—and on track for its biggest monthly decline in more than three years. In commodities, crude oil fell for a third consecutive session to a one-month low as the U.S. pushed forward diplomatic efforts to end the Russia-Ukraine conflict. Gold turned higher intraday but still posted its first weekly drop this month.

Key Themes to Watch● Dovish Shift From the Feds “No. 3 Official”

After a series of hawkish statements from Federal Reserve officials sent global markets into risk-off mode, New York Fed President John Williams stepped in with more reassuring remarks.

Williams noted that with the labor market cooling, the Fed retains room to cut rates in the near term to bring policy closer to a neutral stance. Speaking Friday in Santiago, Chile, he emphasized that downside risks to employment have increased while upside risks to inflation have eased. He characterized the current policy setting as “moderately restrictive,” though less so than earlier this year. Following his remarks, traders raised their expectations for a December rate cut.

● Bitcoin Briefly Breaks Below $81,000

Bitcoin fell more than 30% from its October peak on Friday. Total crypto market capitalization dropped below $3 trillion, while sentiment gauges slid into “extreme fear.”

The sharp decline was driven by forced liquidations, ETF outflows, and profit-taking by large holders. Institutions have shown little evidence of bottom-fishing, and thinning market liquidity continues to amplify volatility risks.

Events to Watch

22:15 — US Industrial Production (MoM, October)

22:50 — ECB President Christine Lagarde Speaks