S&P 500 Hits All-Time High as USD/JPY Nears August Peak and Silver Approaches $50 Mark
Economic Gains Propel US Equities to New Heights
US Stock Markets Achieve New Records
In an impressive show of investor confidence, both the S&P 500 and Nasdaq 100 have reached unprecedented levels. The S&P 500 rose by 0.4%, while the Nasdaq 100 increased by 0.7%, setting new closing records. This surge is attributed to the ongoing excitement surrounding artificial intelligence (AI) developments, which continue to buoy market sentiment.
AMD Boosted by OpenAI Partnership
Advanced Micro Devices (AMD) saw a remarkable 24% jump in its share price following the announcement of a significant deal with OpenAI. This partnership involves supplying AI chips, with the potential for OpenAI to acquire up to a 10% stake in AMD. In response to this news, the semiconductor index experienced a nearly 3% boost.
US Government Shutdown Impacts Economic Data
The current US government shutdown has entered its sixth day, causing delays in the release of crucial economic data. Investors are turning to private data sources to assess the economic outlook, particularly in regard to potential Federal Reserve rate cuts.
Bitcoin Surpasses Key Milestone
Bitcoin has surged past the $125,000 mark, a significant achievement that has bolstered crypto-related equities. Notable gains were observed in companies such as Coinbase, MicroStrategy, Riot Platforms, and MARA Holdings, as they capitalized on Bitcoin’s upward trajectory.
Political Concerns in Europe Rise
Markets in Europe are demonstrating caution following the resignation of French Prime Minister Lecornu. This development has intensified the political crisis in France, raising new concerns about the nation’s credit outlook.
Asian Markets Ride AI Optimism
The positive sentiment surrounding AI has also spread across Asia, pushing equities to record heights in Taiwan, Singapore, and Indonesia. Japan’s Nikkei 225 saw continued growth, fueled by expectations of prolonged loose monetary policy under incoming Prime Minister Takaichi.
Technical Analysis: S&P 500 at a Crossroad
The S&P 500 is maintaining its bullish trajectory, although upward momentum shows signs of slowing. A breakthrough beyond last Friday’s high of 6,750 could see the index move towards the 6,800 level, with the psychological barrier of 7,000 as a further goal. Conversely, slipping past Monday’s low of 6,718 might prompt a revisit to the September high of 6,699. Below that, the trend line from April to October at 6,687 provides potential support.
