US crude hits $96pb, USD extends rally & gold slips | MarketTalk: What’s up today? | Swissquote

The selloff in bonds continues on US government drama. The sell-off in US 10-year papers accelerated yesterday and the 10-year yield spiked to 2.64%. The 2-year yield however, which captures the expectations on Federal Reserve (Fed) actions remain steady a touch above the 5% mark, on slow down worries on all the government and Detroit drama.

Volatility in US bond markets is rising, and the US dollar continues to amass major safe haven demands. Gold slipped below the $1900 per ounce.

In equities, energy and technology stocks helped the S&P500 limit losses yesterday. The energy sector was up as crude oil rallies past $95pb. AI stocks were up as US President Joe Biden said that he will sign an executive action on AI this fall, and Meta announced to introduce AI features in Instagram, Messenger, and WhatsApp.

Earlier this week, Amazon announced to buy a $4 billion stake in Anthropic, similar to Microsoft’s creator of ChatGPT. The deal is a big deal for Amazon.

Zooming out, the S&P500 remains under pressure. Despite an insatiable appetite for AI, the rising yields threaten valuations, the index approaches a critical support zone. In the short run, the risks remain tilted to the downside, as JP Morgan’s Hedged Equity Fund holds tens of thousands of protective puts that will expire on Friday!

Watch the full episode to find out more!

0:00 Intro
0:27 Bond selloff continues on looming US gvt shutdown
3:24 USD gains, XAU slips below $1900 per ounce
5:53 Crude oil rallies, energy & AI stocks limit S&P500 losses, but…
9:10 S&P500 risks remains tilted to the downside!

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

#USD #government #shutdown #USD #crude #oil #rally #XOM #BP #Amazon #AI
#SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news
#Swissquote #MarketTalk #marketanalysis #marketcommentary
_____
_____
_____
Let's stay connected:

[piptutor]

You're my go to watch for a quick and concise summary of the current macroeconomics activities. Thank you. 😊

[kostask]

Thank you Ipek, For your Excellent trading day starter.

[alexandroskatsis]

Thank you Ipek. like always a great update.

[peterhugel]

Hi Ipek, today I had the pleasure listening to you in english...🙂

[johnnycomelately]

1. The world's biggest superpower behaving like children in regard to okaying their funding for the government!
2. Heard a term today "doom cycle" = "rising U.S. bond yields, a rampant dollar, higher oil prices, tightening financial conditions, deepening growth fears, decreasing risk appetite and increasingly fragile equity markets."
But Ipek you did a good job today allaying fears about US government funding vote.

[ammo]

Crude will crash hard once recession takes hold. Confusing price action.

[samthedoor]

The trend seems to be strong in yields and USD will remain strong for now because the jobless claims were not many! Pending Home Sales not so good, but resiliency in the job market I think is very good for higher yields. The thing that’s very bullish for oil is that even if it pulls back on recession fears or something, Saudi can cut more, so it’s in their hands.