US Stocks Push to Record Levels Again – Nasdaq up 0.7%
US stocks kicked off the week on the front foot yesterday, with all three major indices closing at fresh record highs. The Dow added 0.14% to finish at 46,381, the S&P gained 0.44% to 6,693, while the Nasdaq led the charge with a 0.70% jump to 22,788. The dollar softened, with the DXY slipping 0.32% to 97.32, as traders digested a busy slate of Fed commentary. Conversely, Treasury yields edged higher, with the 2-year up 3.1 bps to 3.603% and the 10-year climbing 1.9 bps to 4.147%. Commodities were mixed; oil held steady, with Brent down 0.14% at $66.59 and WTI off 0.13% at $62.32, while gold stole the show, surging 1.66% to $3,746.70 to break further into uncharted territory.
The 2025 Gold Rush Continues
Gold powered higher to new all-time highs in trading yesterday in what were otherwise fairly quiet market conditions. It had closed on Friday just shy of the previous record level, just above $3,700 an ounce, but the flow was all one-way traffic for most of the day as it added 1.66% to close just under $3,750. What initially looked like a stop-loss run continued through the trading day, and for now there seems to be no respite in the world’s favourite precious metal’s ascent. At the moment, there doesn’t seem to be a solid fundamental reason for the move, which probably means we are seeing a big portfolio reallocation. Some commentators are pointing to the Fed cut as the driver of the move, but we certainly haven’t seen that kind of reaction from the dollar or US yields since last week. For now, traders will have to continue to trade what they see in front of them, and at the moment that appears to be more topside and fresh highs for gold.
PMI Data in Focus for Traders with a Touch of Fed
It’s PMI day again, with flash manufacturing and services numbers due out across the globe. Data from Australia, France, Germany, the Eurozone, the UK, and the US will all be digested. The numbers should give a clearer read on growth momentum heading into the final quarter of the year, and traders are expecting to see moves in local markets if anything comes in significantly off expectations. We also have more central banker updates due today: the Bank of England’s Chief Economist, Huw Pill, speaks during the London session, but the highlight is likely to come later in the day when we hear from FOMC Chairman Jerome Powell for the first time since last week’s Fed meeting.
