S&P 500, Nasdaq Reach Record Highs as Oil Steadies and Yields Ease

Market Wrap-Up: US Stocks Hit Records as Oil Steadies and Yields Ease

US stocks ended higher on Tuesday, with the S&P 500 and Nasdaq Composite reaching record closing highs as crude prices steadied and US Treasury yields eased. The Dow Jones Industrial Average rose 0.49% to 51,521.04, while the S&P 500 gained 0.58% to 7,818.95 and the Nasdaq Composite advanced 0.45% to 27,599.79.

Easing concerns over energy-driven inflation provided some relief to equities. Oil prices remained little changed as the market weighed rising Middle Eastern crude exports and the planned Group of Seven release of emergency diesel and crude stockpiles against ongoing supply risks linked to attacks by Yemen's Iran-backed Houthis.

Brent crude rose 0.3% to settle at $100.58 a barrel, while WTI crude gained one cent to settle at $89.44. The G7 has agreed to a coordinated release of 100 million barrels from emergency diesel and crude reserves, although details of the release have yet to be finalised.

Easing concerns over energy-driven inflation also supported expectations for a less aggressive Federal Reserve policy path. Markets were pricing in a 19.4% probability of a second consecutive Fed rate hike at this month's meeting, down from 50.9% a week earlier, according to the CME FedWatch Tool.

The upcoming third-quarter earnings season also moved into focus, with major financial firms expected to report next Tuesday. Analysts currently expect aggregate S&P 500 earnings growth of 30.6% for the July-to-September period, led by projected energy earnings growth of 114.7% and technology earnings growth of 66.5%, according to LSEG.

Technology and AI-related stocks supported the broader rally. Six of the Magnificent Seven advanced, while the Philadelphia Semiconductor Index also gained. AMD rose 2.8% after CEO Lisa Su said the company plans to substantially increase chip supply in 2027 to meet strong AI demand, while Marvell Technology climbed 5.8% after raising its 2028 revenue forecast.

Gold also moved higher as the US dollar and Treasury yields eased. Spot gold rose 0.7% to $4,168.33 an ounce, while US gold futures for December delivery settled 0.7% higher at $4,187.10. The 10-year Treasury yield edged lower after reaching a more than two-decade high on Monday, while the dollar eased from a one-year high.

Markets will now focus on the minutes of the Federal Reserve's September meeting, due on Wednesday, for further clues on the outlook for interest rates.

CPT Markets · Related to your reading

Explore account information

Review account details, terms and risks on the official CPT website.

Open an account ↗

Trading Forex and CFDs involves risk. Availability and terms vary by jurisdiction and entity.

DXY:

Key Takeaway:

• The US dollar eased from a one-year high as Treasury yields moved lower.
• DXY came under renewed pressure and broke below the 102.00 support area.

Technical Outlook:

• Daily Bias: Bearish
• Support: 101.75
• Resistance: 102.28

XAU/USD:

Key Takeaway:

• Spot gold rose 0.7% to $4,168.33 an ounce.
• Lower Treasury yields and a weaker dollar supported gold, alongside safe-haven demand.

Technical Outlook:

• Daily Bias: Bullish
• Support: 4,103
• Resistance: 4,183

WTI:

Key Takeaway:

• WTI crude settled one cent higher at $89.44 a barrel.
• Rising Middle Eastern crude exports and the planned G7 stockpile release eased some supply concerns, while the risk of further disruptions remained.

Technical Outlook:

• Daily Bias: Bearish
• Support: 86.85
• Resistance: 92.03

Nasdaq:

Key Takeaway:

• Steadier crude prices eased concerns over energy-driven inflation, supporting equities.
• Lower Treasury yields reduced pressure on growth stocks and supported risk sentiment.

Technical Outlook:

• Daily Bias: Bullish
• Support: 26,712
• Resistance: 27,727

Calendar Watch:

• EIA Crude Oil Inventories: The latest inventory data will be watched for further signals on US oil supply conditions amid continued volatility in global energy markets.
• US Consumer Inflation Expectations: Updated expectations for consumer inflation will provide further insight into US inflation pressures and the outlook for monetary policy.
• FOMC Meeting Minutes: The September meeting minutes will be watched for further signals on the Federal Reserve's monetary policy outlook and the possibility of further interest rate hikes this year.

Whether you are new to the markets or an experienced trader, stay connected to global markets with CPT Markets.

Access our trading platforms across multiple devices, with competitive spreads and fast execution.

This content is provided for informational purposes only and does not constitute investment advice, investment recommendations, or an offer or solicitation to buy or sell any financial instrument. Trading financial products such as Forex and CFDs involves a high level of risk and may not be suitable for all investors.

You may lose all of your invested capital, and in certain circumstances, losses may exceed your initial deposit. Please ensure that you fully understand the risks involved and carefully consider your financial objectives, level of experience, and financial situation before trading.

View original English source