What a difference a week makes in financial markets. Plus gold hits all-time high.

The volatility that dominated markets in the early part of the month sharply reversed in the last week, driven by growing expectations of interest rate cuts that have bolstered investor risk appetite.

The latest inflation statistics for August seem to give the green light for the Federal Reserve to proceed with an interest rate cut, which is highly likely to occur Sept. 18.

The remaining question concerns the size of the cut — whether it will be 25 basis points or 50 basis points.

Risk assets experienced a significant rebound, with the S&P 500 recovering losses from the prior week. Treasury yields fell substantially and the dollar weakened, driving the price of gold to fresh all-time highs.

Additionally, the week saw the first televised debate between Vice President Kamala Harris and former President Donald Trump, with polls indicating Harris outperformed, further widening her lead.

Back to gold

Gold mining stocks rallied, marking their best one-day performance in six months Thursday as gold prices hit new highs. A macro strategist highlighted the striking similarities between today's economic landscape and the turbulent 1970s when gold had a similar bull run.

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Back to Harris

Solar stocks surged after Harris mentioned the industry in her debate with Trump, bolstering confidence in clean energy policies. Several renewable energy companies saw sharp gains, too.

Good news for small caps

In an exclusive interview with Benzinga, a small-cap expert from global financial services firm Lazard forecast a 30%-50% rally in the Russell 2000, the index of funds with a market capitalization of between $250 million and $2 billion, fueled by declining interest rates and strengthening economic conditions. With the Federal Reserve poised to cut interest rates, small-cap stocks are anticipated to close the performance gap with larger-cap counterparts.

And good news for self-driving cars

Research firm S&P Global Mobility projects U.S. autonomous vehicle sales will reach 230,000 units by 2034 following renewed progress at Alphabet’s Waymo and GM’s Cruise. Advancements in technology and regulatory approvals are expected to drive the industry forward, boosting consumer adoption and market penetration.

Benzinga is a financial news and data company headquartered in Detroit.

This article originally appeared on Detroit Free Press: What a difference a week makes in financial markets. Plus gold hits all-time high.