S&P 500 hits yet another record high as USD/JPY nears August peak and silver the $50 mark
US and global equities climbed to new highs as optimism around artificial intelligence, resilient tech stocks, and a surging cryptocurrency market fuelled investor sentiment. The S&P 500 and Nasdaq set fresh records, AMD soared on a landmark partnership with OpenAI, and Bitcoin broke above $125,000, while Europe faced renewed political tensions and Asia extended its rally.
Macro update
Wall US equities set new records:
The S&P 500 and Nasdaq 100 advanced 0.4% and 0.7%, respectively, both closing at fresh highs as enthusiasm over artificial intelligence (AI) dealmaking continued to lift sentiment.
AMD jumps on OpenAI partnership:
Advanced Micro Devices (AMD) shares soared 24% after unveiling a deal to supply AI chips to OpenAI, which may acquire up to a 10% stake in the company. The semiconductor index gained nearly 3% on the news.
Prolonged US shutdown:
The government shutdown entered its sixth day, delaying key economic releases and leaving investors to rely on private data to gauge the outlook for future Federal Reserve (Fed) rate cuts.
Bitcoin breaks $125,000:
The cryptocurrency’s surge above the milestone drove strong gains in crypto-linked equities including Coinbase, MicroStrategy, Riot Platforms, and MARA Holdings.
European turmoil intensifies:
Markets turned cautious after French Prime Minister Lecornu’s resignation deepened the country’s political crisis, triggering fresh concerns over France’s credit outlook.
Asia extends gains:
Artificial intelligence (AI) optimism spread across the region, sending Taiwan, Singapore, and Indonesia equities to record highs. Japan’s Nikkei 225 also climbed further on expectations of continued loose policy under Prime Minister-designate Takaichi.
S&P 500 trades in record highs
The S&P 500 remains bullish run but seems to be losing upside momentum.
Were Friday's 6,750 high to be exceeded, the 6,800 region would be next in line and eventually the psychological 7,000 mark.
If, however, Monday's low at 6,718 were to be slipped through, the then September record high at 6,699 may be revisited. Further down the April-to-October uptrend line at 6,687 also offers potential support.
S&P 500 daily candlestick chart
USD/JPY nears August peak
USD/JPY continues its surge higher towards the August high at ¥150.92. Together with the January-to-March highs at ¥150.94-to-¥151.30 it is expected to act as formidable resistance and cap.
Potential slips may find support around last week's high at ¥149.95.
Silver hits yet more 13-year highs
The silver price continues its steep ascent whilst approaching the April 2011 high at $49.8142. Between this level and the psychological $50.00 mark, the advance may at least short-term stall.
Potential slips may find support along the accelerated uptrend line at $47.3300 or at the 2 October low at $45.9110.
Medium-term upside pressure should remain in play while the mid-September low at $41.1410 holds. If not, the 10 September low at $40.7255 may be reached as well.
Silver daily candlestick chart
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