Macro update
US equities surge:
Wall Street rallied strongly, with the S&P 500 gaining 1.6% and the Nasdaq 100 climbing 2.2%, after President Trump adopted a more conciliatory stance towards China, easing trade tensions before renewed trade tensions pushed equity futures lower.
Semiconductors power the rally:
Broadcom jumped nearly 10% after announcing a partnership with OpenAI to develop its first in-house AI chips, boosting Nvidia, Micron, and the broader semiconductor sector.
Earnings season underway:
JPMorgan, Goldman Sachs, and Citigroup are set to release results today, officially kicking off the third-quarter (Q3) earnings season.
Trade tensions linger:
Despite Trump’s softer tone, China accused Washington of “making threats,” and both sides imposed new port fees, keeping investors cautious about the outlook.
Asian markets mixed:
Taiwan briefly touched a record high before pulling back, South Korea’s Kospi gave up early gains, and Japan’s Nikkei 225 declined as traders weighed conflicting signals from US–China developments.
Commodities and FX steady:
Gold climbed above $4,150.00 an ounce, Brent crude oil edged toward $63.00 a barrel, and the US dollar held steady as markets priced in an almost certain Federal Reserve (Fed) rate cut later this month.
S&P 500 remains under pressure
The S&P 500 remains under pressure amid ongoing US-China trade tensions with the mid-to-late September and Friday’s low at 6,569-to-6,551 representing a downside target zone. Were it to give way, the late August high at 6,508 may be revisited.
Immediate resistance sits at Monday’s 6,668 high, a rise above which would probably engage the 23 September high at 6,699.
S&P 500 daily candlestick chart