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S&P 500 Tops New Record, Tech Stocks Lifted by OpenAI Deal
The S&P 500 rose 0.3% to a fresh record high on Thursday, while the Nasdaq gained 0.6% and the Dow Jones hovered near the flatline.
Investors kept a cautious eye on the ongoing US government shutdown, though markets largely shrugged off concerns, awaiting further developments and hoping the stalemate proves short-lived.
Technology led sector gains after OpenAI raised $6.6 billion in a share sale valuing the company at $500 billion and announced an agreement with South Korean chipmakers.
Industrials, energy and consumer discretionary stocks also advanced, while real estate lagged.
Among megacaps, Nvidia (+1.8%), Broadcom (+2.6%), and Oracle (+1.7%) posted strong gains.
Also, Tesla added more than 1% as its global vehicle deliveries rose 7.4% in Q3, marking a surprising rebound and helped by the EV tax credit expiration in the end of September.
On the other hand, Amazon shares slipped nearly 0.5%.
Bitcoin hits $119.5K but RSI warns a BTC price pullback is next
Key points:· Bitcoin may have topped out at $119,500 as price indicators flip “overbought.”
· Traders eye a support retest to consolidate its latest rebound, which is nearing 10% in a week.
· ETF inflows total $1.6 billion in three days, with IBIT breaking into the top 20 ETFs by assets.
Bitcoin BTCUSD is ready for a short-term pullback and support retest as price metrics flash “overbought.”
RSI calls for BTC price to take a break
Bitcoin has gained almost 10% over the past week as bulls stage a comeback, echoing the upside in gold.
Amid a trip to over $119,500 on Bitstamp, per data from Cointelegraph Markets Pro and TradingView, market participants nonetheless see the rally cooling before continuation is possible. This is due to price indicators becoming overheated.
Among the evidence supporting such a move is the relative strength index (RSI), now firmly in “overbought” territory at nearly 90/100. This marks the highest four-hour readings since July, when BTCUSD first traded above $123,000.
New Zealand Dollar Rises to 1-Week High
The New Zealand dollar rose to $0.582 on Thursday, extending gains for a third straight session to reach a one-week high, as the greenback struggled amid a US government shutdown and weak private payrolls data.The shutdown comes at a precarious time for the US economy, with the ADP report showing the private sector lost 32,000 jobs—a surprising decline that adds to growing concerns about a weakening labor market and led traders to increase bets on Federal Reserve interest rate cuts this year.
Domestically, however, the kiwi remains under pressure due to expectations that the Reserve Bank of New Zealand will cut its official cash rate by 25bps to 2.75% at its meeting next week, with markets implying a 35% chance it might even ease by 50bps.
Dollar falls as traders assess US government shutdown, poor jobs data
Key points:
· Traders weigh impact of US government shutdown
· ADP jobs and PMI data solidify rate cut bets
· Fed Governor Cook to stay in her post until January
· Euro inflation reinforces bets on ECB keeping rates on hold
The dollar fell to near a one-week low on Thursday as traders weighed the impact of a U.S. government shutdown, while poor jobs data boosted expectations the Federal Reserve will cut interest rates two more times this year.
The dollar index, which measures the greenback against a basket of six currencies DXY, fell 0.2% to 97.52.
After four straight days of losses for the dollar, traders were weighing how long the U.S. government shutdown might last, its effect on economic data releases, and how that will play into the Fed’s decision making.
The ADP National Employment Report showed on Wednesday that U.S. private employment shrank by 32,000 jobs last month after a downwardly revised 3,000 decline in August. Economists polled by Reuters had forecast private employment to increase by 50,000.
The jobs report came amid a U.S. government shutdown, which has put the brakes on the flow of federal economic data at a moment of uncertainty and division among policymakers.
The Trump administration on Wednesday froze $26 billion for Democratic-leaning states, following through on a threat to use the shutdown to target Democratic priorities.
Data also showed on Wednesday that U.S. manufacturing activity edged up in September, though new orders and employment were subdued as factories grappled with the fallout from President Donald Trump’s sweeping tariffs.
In the meantime, the U.S. Supreme Court said it would hear arguments in January over Trump’s attempt to remove Fed Governor Lisa Cook.
Money markets are expecting two further Fed interest rate cuts this year.
Elsewhere, the euro rose 0.2% to $1.1756 EURUSD after data showed on Wednesday that euro zone inflation accelerated last month on higher services prices and a smaller decline in energy costs, likely reinforcing bets on the European Central Bank keeping interest rates on hold for some time.
Financial markets today are hooked on news, so much so that it often feels like an addiction. Headline news is the primary mechanism by which uncertainty is reduced and expectations are formed. At the same time, news can create new uncertainty, especially when it delivers a surprise. That uncertainty can spark volatility. While investors often dislike volatility, traders thrive on it, as it creates opportunities for quick gains.
In this article, we break down why news matters to financial markets and why traders can’t escape the pull of the next headline
Hooked on Headlines: Why Financial Markets Are Addicted to News
NAS100 (NASDAQ): New record high
- New record high above 24797 and back into unchartered territory.
- IF 24800 becomes new support, obvious target is 25000.
- Below 24800 would cool risk but only sub-24425 would negate it.
One thought is with US data delayed due to the government shutdown there is little to change expectations of an October Fed rate cut
NAS100 4 HOUR CHART
US500 (SP500) Breakout into unchartered territory
New record high at 6720
When in record high territory focus is on former high (6702) as support and new record high (6720) as only resistance,
If 6702 becomes support talk will shift to 6800 as a target.
Below 6702 would only cool risk, only sub=6731 would negate it.
US500 4 HOUR CHART
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