The fever is breaking! | MarketTalk: What’s up today? | Swissquote

Show notes

Headline US inflation eased to 3&, and core inflation eased more than expected to 4.8%. That’s still more than twice the Fed’s 2% policy target, the latest set of data is good news for breaking the Fed hawks back amid mounting tension over the past few weeks.
There hasn’t been much change in the expectation of another 25bp hike at the Fed’s next policy meeting, which is now given a more than 90% chance, but the expectation for a September hike fell, the US yields dropped and the dollar fell.
The EURUSD spiked to 1.1150, Cable advanced past the 1.30 level, while the dollar-yen extended losses below the 140 psychological mark. In precious metals, gold is thriving on the back of softer yields and the softer dollar. The price of an ounce rallied past $1960 and consolidates near $1955 at the time of writing.
In energy, oil bulls target the 200-DMA, that stands near the $77pb level, yet the $77/80 range will be hard to drill.
In equities, soft US inflation and decline in US yields pushed the S&P500 to a fresh high since April 2022. Nasdaq 100, on the other hand, rallied to the highest levels since the beginning of last year. Note that, because Nasdaq 100 is now over-concentrated in Mega Cap stocks, there will be a rebalancing in the weightings of the index, and the changing weights could weigh on Nasdaq, as the best performing stocks will see their weight drawn down.
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