[U.S. Market]S&P 500 hits record high of 2017

The US stock market rose on the 12th. Markets were focused on whether the Fed would soon ease its pace of aggressive tightening, the first in decades, and avoid a hard landing on the back of signs of slowing inflation.

The dollar/yen exchange rate rose to the mid-133 yen level. There was also a scene where it was raised to the upper half of the 133 yen range at one point.

US stocks rise, tech-led; S&P 500 rises for 4th straight week U.S. Treasuries Mixed, 10-Year Yield Drops to 2.84% Dollar almost rises across the board, mid 133 yen level – dollar index falls in the week NY crude oil falls, market is conscious of negotiations to rebuild Iran nuclear deal NY gold rebounds, rising for 4 consecutive weeks on a weekly basis

The S&P 500 index rose 1.7% to 4280.15. On a weekly basis, it has continued to rise for four consecutive weeks, the longest since November last year. Many are skeptical that the rally in stocks is a temporary rally in a bear market, short-covering or unwinding of hedges.

Technology stocks led the gains amid thin trading on the day. The S&P 500 has recovered half of its losses from January to June, surpassing the level of the so-called Fibonacci retracement.

The Dow Jones Industrial Average rose $424.38, or 1.3%, to $33,761.05. The Nasdaq Composite Index rose 2.1%.

The next few weeks will be crucial in assessing the sustainability of the rally. Matt Maley of Miller Tabak said stocks were certainly overbought on a very short-term basis, saying a downside or sideways move “isn’t the worst possible outcome.”

“The music is still going,” said Matt Bartolini, head of SPDR Americas research at State Street Global Advisors. “The labor market remains strong and earnings growth remains positive, so any recession will be a relatively shallow one,” he said.

Short-term bonds fell in the US Treasury market. Long-term bonds rose. The background to this is the strong performance of the University of Michigan Consumer Confidence Index. Two-year bond yields rose three basis points to 3.25% at 4:23 p.m. New York time. The 10-year bond yield fell 5 basis points to 2.84%.

US Consumer Confidence Index Hits 3-Month High on Improving Outlook (2)

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In the foreign exchange market, the dollar has risen almost across the board against the 10 major currencies. The dollar index rose for the first time in five trading days. While some hawkish remarks were heard from Fed officials, there were also signs that inflationary pressures were easing. The dollar index fell on a weekly basis.

The dollar continues to rise against the yen. In the morning of New York time, there was a scene where the price was 133.89 yen at one point due to buying from Europe time.

The Bloomberg Dollar Spot Index, which tracks the dollar’s movements against 10 major currencies, rose 0.2%. As of 4:24 pm New York time, the dollar rose 0.4% against the yen to 133.51 yen. The euro fell 0.6% to $1.0259 against the dollar.

New York crude oil futures fell. increased on a weekly basis. Investors are conscious of both rising oil demand this winter and negotiations to rebuild the Iran nuclear deal. If the negotiations are concluded, Iranian crude oil will return to the market and supply will increase.

The Iranian side has said that it will be able to accept the deal negotiated by the European Union (EU) as long as it obtains certain guarantees.

Crude oil prices have been volatile over the past few days, with both positive and negative factors intermingling. However, the speculation that the Fed may slow down the pace of rate hikes as inflation eases is providing support to broader commodities markets.

“I would expect oil prices to rise,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management. The market is pricing in a negative demand adjustment of

West Texas Intermediate (WTI) futures for September delivery on the New York Mercantile Exchange (NYMEX) fell $2.25 (2.4%) from the previous day to $92.09 a barrel. London ICE North Sea Brent for October contract fell $1.5/bbl to $98.15/bbl.

The New York gold market rebounded. On a weekly basis, it was the fourth consecutive week of increases. Two new figures were released this week that point to a easing in inflation in the United States. Fed officials have signaled they will continue to raise interest rates, but speculation that the pace of tightening is slowing has helped gold prices.

US CPI decelerates more than expected, falling energy prices – rate hike pressure eased (3)

U.S. PPI fell 0.5% month-on-month in July-first negative since the beginning of the coronavirus pandemic (3)

The gold spot price rose 0.7% to $1,801.92 an ounce on the day. Gold futures for December delivery on the New York Mercantile Exchange (COMEX) rose 0.5% to close at $1,815.50.