Investors across the U.S. are increasingly anxious about the upcoming presidential election, where President Biden may face former President Donald Trump again. Concerns are mounting about how the election's outcome could impact financial markets, including stocks, interest rates, and oil prices. Financial advisors are fielding numerous questions, while Wall Street strategists assess potential scenarios of a Democratic or Republican victory. BNP Paribas' chief U.S. economist, Carl Riccadonna, suggests this election could be one of the most consequential in recent history, influencing major policy decisions on immigration, Federal Reserve leadership, and international relations amid global tensions.

According to Mark Spitznagel, the renowned "Black Swan" investor and CIO of Universa Investments, the Federal Reserve is unlikely to cut interest rates unless it faces a severe economic downturn and market instability. In a recent Reuters interview, he highlighted that while investors anticipate one to two rate cuts in 2024, these would only occur in response to a significant economic weakening, suggesting that a market plunge and recession could precede any such rate adjustments.

As interest rates rise, America’s largest banks, including Wells Fargo, JPMorgan Chase, and Citi, are paying more in depositor fees than they are earning in interest income—a first since the Federal Reserve began rate hikes two years ago. Wells Fargo's deposit costs increased by $594 million this quarter, overshadowing a $1 million rise in interest income. Both JPMorgan Chase and Citi experienced similar trends, each paying about $350 million more to depositors than they earned. U.S. Bancorp also reported a decrease in net interest income, emphasizing the strategic financial adjustments clients are making in response to a prolonged high-rate environment.

Gold is on track for a weekly loss as U.S. inflation worries dampen demand, despite a modest increase ahead of critical inflation data due this Friday. The anticipated personal consumption expenditures index is expected to confirm that March continued to see high price pressures. Heightened inflation has raised doubts about the Federal Reserve's ability to lower borrowing costs, which has boosted Treasury yields—a negative for gold, which yields no interest. Compounding concerns, a recent report showing U.S. GDP growth falling short of expectations has reignited fears of stagflation, characterized by slow growth and high inflation.