US Stock Markets Remain Elevated Ahead of Earnings – Nasdaq up 0.4%
The major US stock indices all elevated at fresh all-time highs or close to them after a relatively quiet session on Wall Street ahead of key earnings and geopolitical updates set to come later in the week. The Dow lost just 0.01%, the S&P pushed up 0.14%, and the Nasdaq added 0.38% as tech stocks remained bid ahead of Alphabet earnings numbers. The US dollar took a hit on the day, the DXY down 0.64% to 97.85, mainly against the yen after Japanese elections led to the reigning LDP party losing its majority. US Treasury yields slipped as well, the 2-year down 0.8 of a basis point to 3.861%, and the benchmark 10-year down 3.8 basis points to 4.378%. Oil prices dropped as traders shrugged off the latest EU sanctions on Russia, Brent down 0.4% to $69.00, and WTI down 0.5% to $67.00 a barrel. Gold saw a big move, jumping 1.4% to $3,396.42 on the back of the weakening dollar and increased market uncertainty.
Key Week Ahead for US Stocks
US stock indices are still sitting pretty at all-time highs at the moment, and investors are hoping that earnings updates later this week and indeed in the coming weeks will help to propel them to greater heights. The April drop that occurred after President Trump’s Liberation Day tariff update is well in the rear-view mirror now, and recent US data has pointed to a resilient economy and that any tariff impact has not really hit the data or has been much more limited than previously touted. The next litmus test comes from company data, and if we can get through this earnings season without any harsh drops, then many equities traders feel we will see more fresh highs in the next quarter. First major cab off the rank this week is Alphabet, and a solid report from them should take at least the tech-heavy indices north substantially.
Central Bankers in Focus Today
It is a relatively light macroeconomic calendar ahead of traders today, with little in terms of data due to be released across all three trading sessions. However, we do have some key updates from central banks as we move through the day, and traders are expecting to see some moves on the back of them. The Asian session sees the latest RBA Monetary Policy Meeting Minutes released, and Aussie dollar traders will be looking for clues on the next move after the surprise hold two weeks ago. The European session will see the focus on UK markets, with Bank of England Governor Andrew Bailey due to testify in Parliament on the Financial Stability Report, while shortly after the New York open, we hear from Fed Chair Jerome Powell when he speaks at an event in Washington, DC. Richmond Manufacturing Index data (exp. -2) is out later in the day, but overall, traders are expecting central bank updates and any fresh trade news to dominate sentiment.
