US Markets Close Higher on Tech Gains
Tuesday saw US markets close in the green, with investors embracing technology stocks. This surge was fueled by a slight decrease in Treasury yields, reducing concerns about rising borrowing costs. While the NFIB Small Business Optimism Index rose to 91.5 in September from 91.2 in August, it fell short of the anticipated 91.7. Meanwhile, the US trade deficit narrowed to $70.4 billion in August, marking its lowest point in five months, down from $78.9 billion in July. Most S&P sectors experienced gains, with consumer discretionary, information technology, and communication services leading the charge. However, the materials sector suffered a decline due to falling metal prices. The Dow Jones Industrial Average rose by 0.30%, closing at 42,080.37. The S&P 500 closed 0.97% higher at 5,751.13, while the Nasdaq Composite saw a 1.45% increase, finishing the session at 18,182.92.
Asian Markets See Mixed Performance
Wednesday saw Japan’s Nikkei 225 close 1.01% higher at 39,299.50, propelled by gains in the Banking, Insurance, and Finance & Investment sectors. Australia’s S&P/ASX 200 gained 0.13%, closing at 8,187.40, with gains in the IT, Telecoms Services, and Consumer Discretionary sectors. India’s Nifty 50 traded lower by 0.03% at 25,005.90, while the Nifty 500 saw an increase of 0.44%, ending at 23,615.55.
However, China’s Shanghai Composite plunged 6.62%, closing at 3,258.86, while the Shenzhen CSI 300 slid 7.05%, finishing the day at 3,955.98. This sharp decline in Chinese and Hong Kong stocks was attributed to profit-taking following a recent rally, coupled with investor disappointment over the lack of new stimulus measures. Key indexes in China saw their largest daily losses since 2020, with property and tourism stocks bearing the brunt of the decline. Hong Kong’s Hang Seng index dropped 1.38%, closing at 20,637.24.
European Markets Open Slightly Higher
At 06:00 AM ET, the European STOXX 50 index gained 0.02%. Germany’s DAX was up 0.11%, while France’s CAC rose 0.12%. The UK’s FTSE 100 index traded higher by 0.52%.
Oil Rebounds Despite Weak Demand
At 06:00 AM ET, Crude Oil WTI was trading 0.88% higher at $74.19/bbl, and Brent was up 0.79% at $77.80/bbl. Despite expectations of weak demand, oil prices saw an upward tick fueled by Middle East tensions and anticipation of China’s fiscal policy updates. Brent and WTI futures rebounded after a sharp decline as investors remained cautious about regional escalations and their potential impact on oil demand. Natural Gas was down 1.13% at $2.702. Gold traded 0.03% higher at $2,636.05, Silver gained 0.99% to $30.913, and Copper slid 0.53% to $4.4330.
US Futures Point to a Mixed Opening
At 06:00 AM ET, Dow futures were down 0.07%, S&P 500 futures fell 0.10%, and Nasdaq 100 Futures slid 0.18%.
Dollar Strengthens
The US dollar index gained 0.08% to 102.62. The USD/JPY rose 0.32% to 148.66, and the USD/AUD gained 0.21% to 1.4848.
