US equities were mixed yesterday as technology stocks fell despite a sharp oil-price decline on renewed Middle East peace hopes. Treasury yields were mixed and the dollar weakened, helping gold rebound. Traders now turn to the RBA decision, Swiss inflation and US JOLTS data. US mid-term elections remain the main focus, with economic and political developments likely to drive further volatility.
📊 Equities
US stock markets had a mixed session yesterday, with technology stocks once again coming under pressure despite a sharp fall in oil prices as hopes of a peace deal in the Middle East increased. The Nasdaq led the declines as investors continued to pull back from the tech sector, falling 1.07% to 25,164. The S&P 500 slipped 0.51% to 7,541, while the Dow managed to finish in positive territory, gaining 0.41% to 51,983.
🛢️ Oil
Oil prices crashed lower as news that Iran was opening talks aimed at ending the conflict in the Middle East hit the market, raising hopes that a resolution could be on the horizon. Both major contracts suffered heavy losses on the day: Brent crude dropped 8.06% to $104.29, while WTI fell 7.36% to $96.46.
🥇 Gold
Gold bounced strongly off recent support levels, helped by the weaker US dollar. The precious metal gained 1.87% to close at $3,946.11.
💵 FX & Bonds
US Treasury yields were mixed as traders positioned themselves ahead of today’s US mid-term elections. The 2-year yield rose 0.6 basis points to 4.594%, while the 10-year yield fell 1.6 basis points to 4.913%. The dollar lost ground against the major currencies, with the Dollar Index declining 0.19% to 101.77.
| Market | Change | Close |
|---|---|---|
| Dow | +0.41% | 51,983 |
| S&P 500 | -0.51% | 7,541 |
| Nasdaq | -1.07% | 25,164 |
| USD | -0.19% | 101.77 |
| US Treasury – 2 Year | +0.6 bps | 4.594% |
| US Treasury – 10 Year | -1.6 bps | 4.913% |
| Oil – Brent | -8.06% | $104.29 |
| Oil – WTI | -7.36% | $96.46 |
| Gold | +1.87% | $3,946.11 |
📌 Today’s Focus (AEDT)
It looks like being another big day ahead for traders, with both economic and political events likely to drive volatility across global markets. The RBA is expected to raise interest rates in the Asian session, while the first major US employment data of the week will be released later in the day. However, the biggest focus will undoubtedly be on the US mid-term elections, with the results potentially having significant implications for financial markets in the coming weeks.
🔹 Asian Session – 2.30 pm – Australia – RBA Interest Rate Decision
🔹 Asian Session – 3.30 pm – Australia – RBA Press Conference
🔹 European Session – 6.30 pm – Switzerland – CPI Data
🔹 US Session – All Day – US – Congressional Elections
🔹 US Session – 2.00 am – US – JOLTS Job Openings Data