S&P 500 slips again as USD/JPY rally stalls and silver price hits new high
S&P 500 comes off on renewed US-China trade tensions as USD/JPY rally stalls and silver price hits new high.
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
USD/JPY comes off October peak
USD/JPY at least short-term topped out at last week's ¥153.27 high and so far slid to Friday's ¥151.12 low which remains in sight.
If slipped through, the early August high at ¥150.92 may be revisited.
Resistance above Tuesday's ¥152.61 intraday high may be spotted at last week's ¥153.27 nine-month high.
USD/JPY daily candlestick chart
Silver comes off levels last traded in the 1980s
The silver price made yet another multi-decade high, this time at $53.6235 per troy ounce on Tuesday morning before profit taking kicked in. If overcome, the minor psychological $55.00 region may be next in line.
Minor support below the 9 October high at $51.2425 may be spotted between the psychological $50.00 mark and the April 2011 peak at $49.8142.
Silver daily candlestick chart
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