US equities rose Thursday after Fed Governor Christopher Waller signalled support for holding rates steady next meeting if inflation keeps cooling. Treasury yields eased and the Dollar weakened, with the Yen the standout mover on Bank of Japan rate hike bets. Oil stayed supported by ongoing Middle East strikes, while gold surged nearly 2%. Today’s focus is squarely on the US employment report.
📊 Equities
US equities pushed higher in trading yesterday after Fed Governor Christopher Waller indicated that he would support leaving interest rates on hold at the next meeting if incoming data confirms that inflation is continuing to cool. The comments helped ease some of the recent concerns around further Fed tightening, supporting risk sentiment and sending Treasury yields lower.
🛢️ Oil
Oil prices remained well supported as there was still no clear progress towards a peace agreement in the Middle East and strikes continued between the US and Iran. Brent and WTI both edged higher.
🥇 Gold
Gold surged almost 2% as the weaker dollar boosted demand for the precious metal.
💵 FX & Bonds
The dollar came under pressure, with the yen the standout mover as traders priced in the possibility of a Bank of Japan rate hike. USDJPY fell 1.8% on the day, with no confirmation of any official action by Japanese authorities.
| Market | Change | Close |
|---|---|---|
| Dow Jones | +1.18% | 53,686 |
| S&P 500 | +1.06% | 7,747 |
| Nasdaq | +1.40% | 26,584 |
| US Dollar Index (USD) | -0.61% | 98.98 |
| US Treasury 2Y | -3.2 bps | 4.337% |
| US Treasury 10Y | -1.0 bps | 4.768% |
| Brent Crude | +0.25% | $95.87 |
| WTI Crude | +0.32% | $91.30 |
| Gold | +1.97% | $4,472.86 |
📌 Today’s Focus
Today’s focus will be firmly on the US employment report. With traders positioning ahead of the release, markets could remain relatively subdued through the earlier sessions before volatility picks up around the data. The Non-Farm Payrolls, unemployment rate and average hourly earnings will all be closely watched for their potential impact on Fed rate expectations and the US dollar.
🔹 European Session – 6.50 pm – UK – Bank of England Governor Andrew Bailey Speaks
🔹 US Session – 10.30 pm – US – Non-Farm Employment Change Data
🔹 US Session – 10.30 pm – US – Unemployment Rate
🔹 US Session – 10.30 pm – US – Average Hourly Earnings Data
🔹 US Session – 10.30 pm – Canada – Employment Change Data
🔹 US Session – 10.30 pm – Canada – Unemployment Rate