Outlook for the US market: Will the 'Shadow Chair of the Federal Reserve' become the US Treasury Secretary? Gold prices are on the rise again as the Dow Jones starts 1 dollar higher.

Good evening, Moomoo users!Tonight's analysis of NY stocks.

Market Overview
Starting in the USA market, the Dow Jones Industrial Average, which consists of top-quality stocks, opened at $43,871.63, up $1.28. The Nasdaq Composite Index, with a high proportion of tech stocks, started at 18,966.32, down 6.10 points. The S&P 500 average, consisting of 500 large-cap stocks in the USA, fell 4.35 points to 5,944.36.

● S&P 500 futures are declining. The Nasdaq 100 is approaching a level that could trigger a shift from US stocks to international stocks, as pointed out by strategists at the Bank of America.
● Business activity in the Eurozone unexpectedly contracted in November. It indicates the economic impact caused by political turmoil and escalating trade disputes. Manufacturing data from the USA is scheduled to be released later today.
Forex traders are paying attention to the potential of Donald Trump's policies to boost market volatility. Hedge funds are actively buying options contracts that can profit from increased exchange rate fluctuations, leading strategists to significantly revise their forecasts.

Doubts arise about diversifying investments amidst the rise in US stocks.
Since Trump's election, the US stock market has continued its robust ascent, with investors expecting his policies to further drive US stocks upward.
The strong performance of US stocks over the past decade has reignited the debate on whether diversifying investments is still necessary.
While theoretically diversifying investments is considered to reduce risk, this year international stocks and fixed income assets have underperformed compared to US stocks.
Many investors still adhere to diversifying investments, believing that high valuations may limit the future rise of US stocks.
Michael Crook, Chief Investment Officer (CIO) of Milk Creek Capital Advisors, points out the importance of diversifying investments, despite the undeniable appeal of stocks, considering the inherent volatility, stagnation, and potential losses.

Gold prices are on the rise again.
Gold prices are showing renewed strength, rising 5.4% so far this week, marking the best performance since October 2023.
Gold has risen by about 30% this year, driven by solid buying demand from central banks, increased demand as a safe asset, and the Fed's rate cut cycle.
Furthermore, bullish views are expanding, with expectations of further record highs by 2025, with both Goldman Sachs and UBS showing a positive outlook for gold.

Is Trump interfering with the Federal Reserve? Doubts about the 'shadow chair' strategy are being raised.
Kevin Warsh, a former Federal Reserve Board (FRB) member, is expected to be nominated as U.S. Treasury Secretary. There is speculation that he may become FRB chair after Powell's term ends in 2026. Therefore, he is also referred to as the 'shadow FRB chair.'
However, it is strongly believed that Trump's plan to influence the FRB's policy through the 'shadow chair' is not realistic. The ultimate decision-making power on interest rates lies with the Federal Open Market Committee (FOMC), most of whose members are likely to remain in office during the next president's term.
Analysts suggest that even if Trump were to lower rates through the 'shadow chair' strategy, it may be difficult to avoid the sharp rise in inflation that could result. This could increase economic uncertainty and potentially raise political risks.