Wall Street Recap
US equities pushed higher overnight with the S&P 500 closing at another record high, as investors positioned ahead of Nvidia’s highly anticipated earnings.
- Dow Jones closed +0.32% at 45,565
- S&P 500 gained +0.24% to 6,481
- Nasdaq rose +0.21% to 21,590
Nvidia’s results matched expectations, but shares slipped in late trade as investors worried about its China business outlook.
Bond & FX Market Moves
- Bonds: Yields eased further; 2-year yield dropped 3.7bps to 3.609%, 10-year down 2.7bps to 4.234%.
- Dollar: Steady, DXY flat at 98.20.
Commodities
- Oil: Brent +0.82% to $67.77, WTI settled at $63.83, supported by another US inventory draw.
- Gold: +0.11% to $3,397.37, hovering near multi-week highs.
Macro Focus – Core PCE on Friday
Traders now turn to the Fed’s preferred inflation gauge (Core PCE) due Friday.
- Market expects 0.3% MoM / 2.9% YoY.
- A hotter print could challenge the 88% chance of a September rate cut, while a softer reading would cement expectations and extend risk appetite.
Global Market Outlook
- Asia: Likely to open weaker, pressured by Nvidia’s cautious outlook despite solid results. With a light data calendar, rangebound trading with a downside bias is expected.
- Europe: Early focus on Swiss GDP (exp 0.1%), with potential CHF volatility.
- US session:
- Preliminary Q2 GDP (exp 3.1%)
- Weekly Jobless Claims (exp 231k)
- Pending Home Sales (exp -0.4%)
- Comments from FOMC’s Waller, key after Powell’s Jackson Hole remarks.