US Stocks Push Higher After Fed Minutes – S&P Up 0.25%
The major US stock indices edged higher again yesterday as investors digested the latest Federal Reserve meeting minutes and further updates from President Trump. The S&P 500 notched up another record close, adding 0.24% on the day, while the Dow and Nasdaq also moved higher, closing up 0.16% and 0.07% respectively.
US Treasury yields fell following the Fed minutes, with the rate-sensitive two-year dropping 3.8 basis points to 4.268%, and the benchmark 10-year falling 1.8 basis points to 4.533%. Oil prices continued to rise after comments from President Trump calling for a deal, with Brent crude up 0.32% to $76.08 and WTI gaining 0.46% to $72.18. Meanwhile, gold drifted lower, losing 0.09% to close the New York session at $2,932.80.
Gold Remains at a Pivotal Level
Gold is once again trading near all-time record levels, with the market divided on its next move. However, there is broad consensus that the next shift will be significant. Global market uncertainty has driven the precious metal to unprecedented highs, but investors are now seeking further catalysts to push it into fresh topside ranges and challenge the next psychological barrier at $3,000 an ounce.
Some analysts are questioning how much uncertainty has already been priced in and whether, as a clearer picture of the ‘new world’ global market under the Trump administration emerges, we might see profit-taking and a potential correction following the strong gains of recent months.
Event Calendar to Spur More Trading Today
The Asian session is likely to be the highlight in terms of macroeconomic updates and trading opportunities today. Australian markets will once again be the focus of investor attention, with employment data due early in the day. The market expects a 20,000 increase in jobs last month.
Just 30 minutes later, attention will turn to China for the latest Loan Prime Rate updates from the Bank of China, with rates expected to remain steady at 3.10% for the one-year term and 3.65% for the five-year term.
The European session offers little of significance to move the markets, but in the US, the usual weekly unemployment claims data and the Philly Fed Manufacturing Index will be released shortly after the New York open. Later in the session, US crude oil inventory numbers are also scheduled for release.
