Overnight, speculation of a September rate cut in the US grew following dovish commentary from Federal Reserve Chairman Jerome Powell. His remarks spurred Wall Street, leading to significant gains with the Nasdaq closing +2.6%, the S&P 500 +1.9%, and the Dow Jones +0.1%. U.S. 10-year yields fell 10bps to 4.04%, while increased tensions in the Middle East drove oil prices 5% higher to $78.40 a barrel.

Overnight, technology stocks dragged on Wall Street, leading to a mixed performance among major indices. The Nasdaq closed down by 1.3%, the S&P 500 fell by 0.8%, while the Dow Jones managed a positive close, up by 0.5%. U.S. 10-year yields dipped by 3bps ahead of the FOMC decision, while crude oil prices dropped by 0.7%, settling at $75.3 a barrel.

In a subdued start to the week, U.S. equity indices remained largely flat. U.S. 10-year yields fell slightly by 2bps to 4.17%, and crude oil saw a decline of 1.7%, closing at $75.90 a barrel. The AUD/USD traded within a narrow range of 0.6524 to 0.6568 before settling around 0.6545/50.

The volatile conditions continued to round out last week with Wall Street rebounding, seeing the Dow Jones close +1.6%, the S&P 500 +1.1%, and the Nasdaq +1%. U.S. 10-year yields fell by 5 bps to 4.19%, while crude oil closed -1.9% at $76.80 a barrel. The AUD/USD traded in a 0.6536/0.685 range before closing the week at 0.6547.

A mixed session on Wall Street overnight saw the Nasdaq close down by 1%, the S&P 500 by 0.6%, while the Dow Jones gained 0.2%. U.S. 10-year yields fell 4 bps to 4.24%, while crude oil rose 0.7% to $78.10 a barrel. The AUD/USD traded in a 0.6510/0.6582 range before settling at 0.6545/50 ahead of the Asian open.

Wall Street fell sharply overnight following disappointing corporate earnings and a broader weakening of risk sentiment. The Nasdaq closed down by 3.7%, the S&P 500 by 2.3%, and the Dow Jones by 1.3%. U.S. 10-year yields rose 3 bps to 4.29%, while crude oil increased by 0.8% to $77.50 a barrel. In currency markets, USD/JPY fell to a low of 153.105, while AUD/USD traded in a 0.6578/0.66175 range before settling at 0.6580 ahead of the Asian open.

A relatively quiet night saw all three U.S. equity indices close almost unchanged on the day. U.S. 10-year yields were also flat, while crude oil fell 1.3% to $77.40 a barrel. The AUD/USD remained heavy and closed at the lower end of its 0.6612/46 range.

Wall Street rebounded overnight with the Nasdaq closing up by 1.7%, the S&P 500 by 1.1%, and the Dow Jones by 0.3%. U.S. 10-year yields edged higher, while crude oil fell 0.4% to $79.70 a barrel. The USD was stronger across the board, including against the AUD, which closed at the lower end of its 0.66315/0.6702 range.

This morning, US President Biden confirmed he is pulling out of the 2024 election race and has endorsed his VP Kamala Harris as the Democratic nominee. So far, there has been very limited market reaction to the news with only a few prints across the whole market this morning in extremely quiet trade.

The USD dropped further overnight to 103.8 points despite stronger-than-expected second-tier US economic data. The main US equity markets decreased again, with the tech-heavy Nasdaq particularly hard hit due to potential tighter US restrictions on computer chip sales to China. The VIX, known as the ‘fear gauge,’ increased to its highest level since early May.

US stocks strengthened as predictions of increased market volatility did not materialize after the assassination attempt on Republican Presidential candidate Donald Trump. Investors may be focusing on the growing expectation that Trump will win the November election, bolstered by the prospect of upcoming interest rate cuts. The yield on the US 10-year Treasury rose by 4.7 bps to 4.23%.

A solid end to the week on Wall Street saw all three major equity indices close with gains of approximately 0.6%. U.S. 10-year yields dipped slightly to 4.19%, while crude oil fell 0.4% to close at $83.40 a barrel. In the currency markets, USD/JPY continued to dominate flows, closing at the lower end of its range from 157.30 to 159.45. The AUD/USD traded within a range of 0.67545 to 0.67935 before ending the week at 0.6784.