Macro update
Tech rally drives Wall Street to new highs:
The S&P 500 gained 0.6% and the Nasdaq 100 advanced 1.1%, both closing at record levels as strength in chipmakers and AI-focused names such as Advanced Micro Devices (AMD) and Dell lifted sentiment. The Dow Jones finished little changed.
Fed minutes reveal split outlook:
Minutes from the Federal Reserve’s (Fed) September meeting showed policymakers divided over the pace of rate cuts, though most still anticipate further easing this year despite lingering inflation pressures.
AI enthusiasm fuels momentum:
Analysts noted that robust investment and dealmaking in artificial intelligence (AI) continue to underpin growth expectations, with tech sector earnings forecasts raised to 20.9% for the third quarter (Q3)
Gold extends record run:
sGold held firm above $4,000.00 an ounce as investors sought safety amid geopolitical and fiscal concerns.
Asia tracks Wall Street gains:
The Nikkei 225 rose 1.5% and Taiwan’s benchmark hit new highs, while Chinese blue chips rallied after reopening, as fresh rare earth export restrictions highlighted ongoing trade tensions.
Oil eases on Gaza ceasefire:
Brent crude oil slipped 0.6% to $65.89 a barrel after Israel and Hamas reached an initial ceasefire agreement, easing supply concerns and reducing geopolitical risk.
DAX 40 rally nears record high
The DAX 40’s rally is ongoing with the July record high at 24,638 being eyed. Further up beckons a 161.8% Fibonacci extension at 24,900.
Minor support may be found around the mid-August high at 24,536 and the early October peak at 24,524, 24 July high at 24,515 and mid-July high at 24,495.