US stocks moved higher yesterday, with the Dow leading the advance while technology shares made only modest gains. Treasury yields tumbled to levels not seen since September despite stronger-than-expected US PPI and Retail Sales data, as traders scaled back expectations for another Federal Reserve rate hike this month. The dollar fell more than 0.5% as lower yields weighed on the greenback. Oil contracts diverged, with WTI rallying after a sharp decline in US crude inventories while Brent eased, and gold bounced strongly from recent support. Today’s quieter calendar puts the focus on speeches from Bank of England Governor Andrew Bailey, Fed Chair Kevin Warsh and Bank of Canada Governor Tiff Macklem.
📊 Equities
US stocks pushed higher in trading yesterday, although it was another mixed session across the major indices. The Dow led the charge, rising 1.08%, while tech stocks struggled to make much headway, with the Nasdaq gaining just 0.08%. The S&P 500 rose 0.33%.
🛢️ Oil
Oil markets experienced another interesting session, with the two major contracts heading in opposite directions. WTI rallied strongly by 2.65% to $97.61 after US crude inventories recorded a sharp decline, while Brent drifted 0.24% lower to $105.81 as traders continued to weigh broader supply concerns and ongoing geopolitical tensions in the Middle East.
🥇 Gold
Gold was one of the day’s stronger performers, rising 1.59% to $4,170.25. The precious metal bounced firmly off recent support levels as the weaker dollar and falling Treasury yields provided some welcome relief.
💵 FX & Bonds
Treasury yields dropped sharply, falling back to levels not seen since September despite stronger-than-expected US PPI and Retail Sales numbers. Traders continued to scale back expectations for another Federal Reserve rate hike this month, putting pressure on yields and dragging the dollar lower against the majors. The Dollar Index lost 0.51% to 102.00 as the greenback continued to retreat from recent annual highs.
| Market | Change | Close |
|---|---|---|
| Dow | +1.08% | 52,177 |
| S&P 500 | +0.33% | 7,744 |
| Nasdaq | +0.08% | 26,713 |
| USD | -0.51% | 102.00 |
| US Treasury – 2 Year | -5.9 bps | 4.738% |
| US Treasury – 10 Year | -12.7 bps | 5.058% |
| Oil – Brent | -0.24% | $105.81 |
| Oil – WTI | +2.65% | $97.61 |
| Gold | +1.59% | $4,170.25 |
📌 Today’s Focus (AEST)
It is a quieter day on the macroeconomic calendar, with little in the way of major economic releases to drive markets. However, traders will be keeping a close eye on comments from several leading central bankers, including Fed Chair Kevin Warsh. With markets continuing to reassess the outlook for US interest rates, any fresh signals from the Fed could trigger further moves in the dollar, bond yields and equity markets.
🔹 Asian Session – 1.00 pm – UK – Bank of England Governor Andrew Bailey Speaks
🔹 Asian Session – 2.30 pm – US – Fed Chairman Kevin Warsh Speaks
🔹 Asian Session – 3.15 pm – Canada – Bank of Canada Governor Tiff Macklem Speaks