Tech Stocks Push Higher in US – Nasdaq Up 1%
US tech stocks drove higher in trading yesterday, led by Alphabet after a favourable decision in a US court. The Dow drifted 0.05% lower to 45,271, while the tech sector took the S&P up 0.51% to 6,448 and the Nasdaq up 1.02% to 21,457. The dollar fell as the first US jobs number of the week, the JOLTS Job Openings, came out lower than expected, with the DXY down 0.25% to 98.15. Treasury yields also fell after the data, with the 2-year down 2.3 basis points to 3.617% and the 10-year down 4.5 basis points to 4.217%. Oil contracts took a big hit on news that OPEC+ may announce further output hikes at the end of the week, with Brent down 2.55% to $67.39 and WTI down 2.81% to $63.75 a barrel. Gold, however, continued its ascent, closing the session up another 0.74% at $3,559.42 an ounce.
Gold Shines in Uncertain Markets
Gold prices have taken off this week, with investors piling into the world’s favourite precious metal as uncertainty over several issues that affect global markets remains high. Geopolitical risks have increased across the globe as a hoped-for ceasefire in Ukraine seems to be moving further away, and legal certainty over US tariffs has been brought into question, leaving investors wondering what the status quo in a few months will be. Gold broke through the previous all-time high just above $3,500 on Monday and hasn’t looked back since, recording a 4.5% rise in the last few days as it hit its latest record level at $3,578.50. Traders are continuing to monitor geopolitical risks as we move into the fresh month’s trading, but in the current conditions, we could see more fresh highs in the coming days and weeks.
More Data in Focus for Traders Today
The economic calendar will continue to add fresh updates in the sessions ahead today, with some big data drops that could see markets move ahead of tomorrow’s key Non-Farms update. There is little on the cards in the Asian session today, although Aussie dollar traders will keep a close eye on what RBA Deputy Governor Andrew Hauser has to say when he speaks early in the day. Swiss markets will be in sharp focus early in the London session with key CPI data (exp. 0.0% m/m) scheduled. The New York session is again expected to provide the most potential for volatility, with some key data due out. The ADP Non-Farm Employment Change data (exp. 73k) is first cab off the rank, swiftly followed by the Weekly Unemployment Claims numbers (exp. 230k), both of which will be closely monitored as indicators for tomorrow’s NFP print. The ISM Services PMI number (exp. 50.9) is due out later in the day, and we are also set to hear from the Fed’s John Williams and Austan Goolsbee in the afternoon.
