Daily Updates

US equities rose again overnight as traders scaled back expectations for a September Fed rate hike following comments from Governor Christopher Waller.

Wall Street shrugged off the recent rise in oil prices and the ongoing Middle East conflict. Traders instead focused on weaker-than-expected US private employment data from ADP and reassuring inflation comments from New York Fed President and FOMC Vice Chair John Williams.

Escalating fighting between the US and Iran drove oil prices to their highest levels since July and triggered a broader risk-off move across global markets.

Global risk sentiment weakened overnight as a renewed escalation in the Middle East conflict and the hawkish shift in US rate expectations weighed on markets. 

US equities gave back early gains after Fed Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole Economic Policy Symposium. His remarks pushed US Treasury yields sharply higher, particularly at the short end of the curve, as expectations for further Fed rate increases intensified.

The S&P 500 resumed its climb last night, though gains were limited to information technology amid optimism following solid results from semiconductor producer Nvidia.