US Stocks Hit New Highs Again – Nasdaq up 0.7%
US tech stocks pushed higher again in trading yesterday to propel the S&P and the Nasdaq to fresh record levels, while President Trump hinted at a possible end to the government shutdown. The Dow edged lower, losing 0.14% to 46,694, while the S&P added 0.36% to close at 6,740 and the Nasdaq gained 0.71% to 22,941. The dollar pushed higher, notably against the yen and euro, as political surprises hit both markets, with the DXY up 0.38% to 98.09. Treasury yields also pushed higher despite the ongoing shutdown, with the 2-year up 1.3 basis points to 3.588% and the 10-year up 3.3 basis points to 4.152%. Oil prices jumped nicely off recent lows as OPEC+ production increases were not as substantial as previously reported, with Brent up 1.49% to $65.49 and WTI up 1.33% to $61.69. Gold powered higher again to yet another fresh record level, adding another 1.95% to close at $3,960.58 an ounce.
Gold Powering Higher Again
Gold powered higher again in trading yesterday and is now within touching distance of $4,000 an ounce — something that many market participants would have laughed at just a few short weeks ago. It has now risen nearly 14% in the last month after it broke through the previous record level just above $3,500, and its relentless push has many in the market still puzzled. We usually see gold trade like this in highly volatile, high-risk economic conditions; however, we currently have the strange phenomenon of global stock markets also trading at all-time highs at the same time. This move has been relentless, and it seems that the $4,000 barrier will be broken in short order. However, many traders are now analyzing what is behind such a strong move in current conditions. It does feel like there are some very big portfolio adjustments going through from major players, and the question will be how long this momentum can continue. For now, though, many are just trying to go with the flow, and any dip is being well supported. Roll on 4k!
Central Bankers in Focus for Traders Again Today
The macroeconomic calendar is relatively quiet once again today; however, given the volatility we saw across markets yesterday and the expected continued political updates, traders are expecting to be busy across all three sessions. In addition to geopolitical updates, we are also set to hear from a plethora of central bankers, which could add further spice to the mix. Chinese markets are closed again in the Asian session; however, Japanese markets are likely to remain in focus with more updates expected from the new Prime Minister and her team. There is nothing in the way of Tier 1 data scheduled in the London session, although speeches from both the Bundesbank’s Joachim Nagel and the ECB’s Christine Lagarde may see some reaction in the euro. We do have some data due out shortly after the New York open, with the Canadian Ivey PMI (exp. 51.2) due for release. We are also set to get more updates on Fed thinking during the day, with members Bostic, Bowman, Kashkari, and Miran all scheduled to speak.
