S&P 500 hits another record high while USD/JPY recovers and silver eyes 13-year peak
S&P 500 hits another record high, buoyed by this week’s Fed rate cut and dovish tone, while USD/JPY recovers from its 3-month low and the silver price eyes its 13-year peak.
Macro update
Wall Street saw a powerful upswing as the S&P 500, Nasdaq 100, and Dow Jones all closed at fresh record highs, building on momentum from the Federal Reserve’s (Fed) rate cut earlier this week.
Intel stood out as a market driver, soaring 22.8% - its strongest one-day rally since 1987 - after NVIDIA announced a $5 billion investment in the company. The news boosted sentiment across the chip sector, with Nvidia climbing 3.5%, lifting the broader semiconductor index by 3.6% and pushing the S&P 500 tech sector up 1.36%.
Strength also extended into small-cap stocks, with the Russell 2000 hitting its first record close since 2023, supported by easing borrowing costs in the lower interest rate environment.
Globally, the Bank of Japan (BoJ) kept rates unchanged but signalled a more hawkish outlook, leaving European markets poised for a flat start following Thursday’s rally.
Meanwhile, United States (US) economic data showed weekly jobless claims declined, though the labour market still looks soft overall.
Investors now anticipate roughly 44 basis points (bp) of Fed rate cuts by year-end, shaping expectations for continued market support.
S&P 500 hovers below record high
The S&P 500 is trading slightly below Thursday's 6656 record high but profit taking ahead of the weekend may lead to a slight dip below this level occurring.
If so, a step back towards the 11 September high at 6592 may ensue.
Were a breach of resistance at 6656 to be seen, the 6700 region would be next in sight.
S&P 500 daily candlestick chart
USD/JPY re-enters its sideways trading range
USD/JPY once again trades within its August to September sideways trading range, having swiftly recovered from Wednesday's ¥145.49 low.
The August to September downtrend line at ¥148.20 and Thursday's high at ¥148.26 are targeted. Were they to be overcome, the 200-day simple moving average (SMA) at ¥148.60 and upper boundary of the sideways range at the early September high at ¥149.13 may be reached.
Minor support may be seen around the 11 September low at ¥146.99.
USD/JPY daily candlestick chart
Silver once more heads towards 13-year high
The price of silver is seen bouncing off Wednesday's $41.1410 low and eyes its 13-year high made at $42.9720 on Tuesday.
Upside pressure will be maintained while Wednesday's low at $41.1410 holds. If not, the 10 September low at $40.7255 may be revisited.
Above the $42.9720 peak lies the August 2011 high at $44.2183 and the April 2011 high at $49.8142.
Silver daily candlestick chart
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