US Stocks Rally After Non-Farms and Powell – Nasdaq Up 0.70%
The major US indices all closed higher after jobs data came in slightly below expectations, and Jerome Powell stated that the economy is in a ‘good place’. The Dow finished up 0.52%, the S&P rose 0.55%, and the Nasdaq gained 0.70%.
US Treasury yields moved higher, with the 2-year yield rising 3.1 basis points to 3.999%, while the 10-year yield edged up 1.3 basis points to 4.301%. Meanwhile, the dollar continued to weaken, with the DXY down 0.26% to 103.84. Oil prices rebounded from recent lows, with Brent up 0.97% to $70.32 and WTI gaining 1.06% to $67.04. Gold remained relatively stable, trading within a tight range and closing nearly flat at $2,910.76 per ounce.
Gold in a Holding Pattern
Global markets experienced extreme volatility last week, with significant moves across various assets. However, gold remained relatively subdued, trading within much smaller ranges than expected.
Despite the dollar plummeting nearly 4%, gold held firm, staying just above the $2,900 level for most of the week. Given the recent turbulence in the precious metal, this relative calm has surprised some traders. While gold remains within striking distance of all-time highs, expectations for a retest have waned. Instead, some traders anticipate a potential correction if profit-taking increases and the dollar regains favour. What most market participants agree on is that stronger moves are likely in the days and weeks ahead.
A Quiet Calendar Day to Kick Off the Week
This week’s macroeconomic calendar is far quieter than last week’s, with no tier-one data releases scheduled for today. Traders expect rangebound conditions in the early session but will closely monitor newswires for geopolitical developments that could drive market movements.
Despite last week’s packed calendar, the biggest market shifts were driven by geopolitical updates. Many market participants believe this trend will continue, with a strong focus on global trade issues and potential stimulus measures in the coming days.
