Daily Updates

The S&P 500 reset its record high yesterday, while the Nasdaq and Dow Jones closed just short of their own highs, ahead of Nvidia, the chipmaker poster child, announcing its quarterly results. US Treasury yields declined, as New York Fed President John Williams emphasised central bank independence, adding that each FOMC meeting is ‘live’.

US shares had a lacklustre start due to US President Donald Trump intending to dismiss Fed Governor Lisa Cook, but rebounded later in the trading session, as hopes for a September fed funds rate cut intensified further.

The return of optimism to the US markets proved to be short-lived, with US stocks starting the new trading week on the back foot. Following the equity market close, US President Donald Trump published a letter on his social media that he is dismissing Fed Governor Lisa Cook effective immediately, citing his declared authority under the Federal Reserve Act.

US stocks surged on Friday night, while US Treasury yields dropped and the US dollar depreciated, in reaction to a dovish speech by Fed Chair Jerome Powell at the Jackson Hole symposium.

The losses on Wall Street continued on Thursday night, as the generally positive US S&P Global PMI report increased anxiety ahead of Fed Chair Jerome Powell’s speech in Jackson Hole, scheduled for tonight.

The decline in the S&P 500 extended into Wednesday, as the FOMC minutes turned out to be a bit hawkish, adding to anxiety ahead of Fed Chair Jerome Powell’s speech tomorrow night.