Three major US indexes closed at new record highs after a lower-than-expected inflation report raised the possibility of a Federal Reserve interest rate cut later this year and prompted investors to shift to riskier assets. The S&P 500 rose 0.8%, the Nasdaq rose 1%, and the Dow Jones Industrial Average rose 470 points. Technology stocks led the rally, with AMD and IBM surging 7.5% and 8.77%, respectively, after IBM said it had successfully implemented a key quantum error correction algorithm on AMD chips, boosting sentiment across the sector. Intel rose 1.6% after returning to...
Silver soared to $39 per ounce, approaching the 14-year high of $39.5 touched in the end of July amid the outlook of rate cuts by the Fed, while markets assessed the demand for silver's industrial uses. The Fed sees a shift in the balance of risks of a weaker labor market against inflation following the revision to payrolls and higher unemployment, likely warranting an adjustment to monetary policy that will translate to a 25bps rate cut in the upcoming September decision. Additionally, traders moved to place more bets of three total rate cuts this year, supporting non-yielding precious...
Gold strengthened 0.6% to US$3,359/oz in the US session on Friday (August 22nd), as the dollar weakened after Fed Chairman Jerome Powell opened the door to a September interest rate cut. Sentiment turned positive for the precious metal as the prospect of lower interest rates typically reduces the opportunity cost of holding gold. In his Jackson Hole speech, Powell emphasized that unemployment is stable but risks to the labor market are rising. He stated that policy remains in restrictive territory, so "the underlying outlook and shifting balance of risks may require adjustments" to the...
Oil prices held steady as the market weighed the prospects for Russian crude flows to India after the Trump administration stepped up criticism of the trade deal ahead of an expected tariff hike. Brent held above $67 a barrel, on track for its biggest weekly gain since early July. White House trade adviser Peter Navarro again criticized India for continuing to buy Russian oil and said he sees US import levies on the country doubling as planned on August 27. President Donald Trump has threatened to raise tariffs on Indian goods to 50%, half of which is due to purchases of Russian crude....
The U.S. dollar held near a two-week high against a basket of major currencies on Friday (August 22nd) as investors reduced rate cut bets ahead of Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium. The euro and the pound touched their weakest levels against the dollar since early August, last holding steady at $1.1160 and $1.3413, respectively. The dollar index edged up 0.1% to 98.72, heading for a 0.9% gain this week to end two straight weeks of declines. Although indications of a weakening U.S. labor market have bolstered hopes for a reduction in borrowing...
Oil prices were little changed on Friday (August 22nd) as hopes for a peace deal between Russia and Ukraine faded, putting prices on track for their first weekly gain in three weeks. Brent crude futures fell 17 cents, or 0.25%, to $67.50 a barrel at 10:00 GMT. West Texas Intermediate (WTI) crude futures fell 13 cents, or 0.2%, to $63.39. Both contracts rose more than 1% in the previous session. Brent has risen 2.8% so far this week, while WTI has gained 1%. "Everyone is waiting for President Trump's next move," said UBS commodities analyst Giovanni Staunovo. "In the coming days, it seems...