US equity markets extended their gains overnight as another softer-than-expected inflation reading reinforced expectations that the Federal Reserve will be able to remain on hold for the foreseeable future. Treasury yields fell across the curve, the dollar was little changed, and oil remained near one-month highs on ongoing Middle East supply concerns. Gold finished slightly higher after another volatile session.
📊 Equities
US equity markets extended their gains overnight as another softer-than-expected US inflation reading reinforced expectations that the Federal Reserve will be able to remain on hold for the foreseeable future. The Nasdaq once again led the advance, gaining 0.62% to 26,269, while the S&P 500 added 0.38% to 7,572 and the Dow Jones rose 0.29% to 52,658 as investors continued to favour growth stocks amid easing inflation concerns.
🛢️ Oil
Oil prices remained close to one-month highs as the ongoing conflict in the Middle East continued to underpin supply concerns. Both Brent and WTI crude posted modest gains, with Brent rising 0.70% to US$84.95 per barrel and WTI adding 0.26% to US$80.16.
🥇 Gold
Gold finished slightly higher after another volatile trading session, gaining 0.10% to US$4,057.81 per ounce as investors balanced geopolitical uncertainty against improving risk appetite.
💵 FX & Bonds
The benign inflation data prompted another rally in the bond market, with Treasury yields falling across the curve. The 2-year yield declined 5.8 basis points to 4.135% and the 10-year yield fell 4.2 basis points to 4.547%. The US Dollar Index was little changed, edging down just 0.02% to 100.47 as investors digested the latest economic signals.
| Market | Change | Close |
|---|---|---|
| Dow Jones | +0.29% | 52,658 |
| S&P 500 | +0.38% | 7,572 |
| Nasdaq | +0.62% | 26,269 |
| USD Index | -0.02% | 100.47 |
| US Treasury 2Y | -5.8 bps | 4.135% |
| US Treasury 10Y | -4.2 bps | 4.547% |
| Oil – Brent | +0.70% | $84.95 |
| Oil – WTI | +0.26% | $80.16 |
| Gold | +0.10% | $4,057.81 |
📌 Today’s Focus
Attention now turns to another busy session ahead, with US Retail Sales, Weekly Unemployment Claims and the Philadelphia Fed Manufacturing Index all due for release. These figures are expected to provide further insight into the strength of the US economy and could determine whether the recent decline in Treasury yields and expectations for Federal Reserve policy continue.
🔹 UK – GDP
🔹 US – Retail Sales
🔹 US – Weekly Unemployment Claims
🔹 US – Philadelphia Fed Manufacturing Index