Daily Updates

Scaling back expectations for fed funds rate hikes following the downside surprise in US PPI inflation drove the S&P 500 to fresh record highs overnight, while US Treasury yields declined.

US equities climbed overnight, with the S&P 500 finishing just short of a fresh record high, supported by a strong rise in leading chipmaker Nvidia. However, the Dow Jones closed marginally lower. US Treasury yields fell, particularly at the short end of the curve, after the US CPI report came in line with expectations.

US equities declined ahead of tonight’s US CPI release. US Treasury yields rose early before falling back after a solid US Treasury auction. The US dollar was relatively steady against other major currencies. Oil prices drifted higher as the standoff in the Middle East continued.

The S&P 500 eased from its record high last night, while oil prices and government bond yields rose amid further signs of a stalemate in US-Iran negotiations.

Wall Street partially rebounded on Friday, while government bond yields declined and the US dollar depreciated, as a surprising fall in US non-farm payrolls eased concerns about Fed monetary policy tightening in the coming months.

The S&P 500 edged lower again on Thursday night as investors awaited official US jobs figures due tonight, while recognising that reopening the Strait of Hormuz may take longer than hoped amid escalating rhetoric and military action in the Middle East.