Equities Mixed, Commodities Hold Steady, Eyes on Jobs Data and Fed Policy

Image Source : Krish Capital Pty Ltd

Index Update:  The Dow Jones rose 0.91% on Tuesday, driven by strong gains in healthcare stocks like UnitedHealth and Amgen. In contrast, the S&P 500 and Nasdaq fell due to a sharp selloff in tech shares, with notable losses in Nvidia, Tesla, and Palantir. On the policy front, the Senate passed Trump’s tax-and-spending bill, which now returns to the House. Investors also focused on trade tensions as a tariff reprieve nears its end, while Fed Chair Powell signaled caution on rate cuts, citing inflation concerns and the need for more data.

Market Movers:  On Tuesday, the top gainers were BioNexus Gene Lab Corp (+262.87%), followed Mustang Bio, Inc (+114.64%). On the contrary Cellectar Biosciences, Inc (-31.65%) and Artelo Biosciences, Inc (- 28.41%) declined the most the same day.

Commodities Update:  Crude oil prices hovered around $65.5 for WTI and $67.1 for Brent as investors awaited OPEC+’s decision to raise output by 411,000 bpd in August, totaling a 1.78 million bpd increase for 2025—over 1.5% of global demand. The move is aimed at penalizing overproducers and regaining Saudi market share. However, an unexpected 0.68 million-barrel rise in U.S. crude inventories, easing geopolitical tensions from the Israel-Iran ceasefire, and uncertainty over possible new U.S. tariffs are keeping prices under pressure. Gold traded above $3,330 per ounce, supported by a weaker U.S. dollar amid fiscal and trade uncertainties following the Senate’s passage of a bill projected to raise the national debt by $3.3 trillion. Trade tensions with Japan and mixed signals from Fed officials on rate cuts also influenced investor sentiment. While easing geopolitical risks have slightly reduced gold’s safe-haven appeal, upcoming U.S. labor data remains a key focus for markets.

Macro Update:  U.S. employers announced 47,999 job cuts in June 2025, the lowest monthly total this year and down sharply from May. While economic conditions were the main reason cited, over 2,000 cuts were linked to tariffs. The consumer products sector led the month's layoffs, followed by services, financial, healthcare, retail, and government. Despite June’s slowdown, Q2 saw 247,256 cuts—the highest for any second quarter since 2020. Year-to-date, 744,308 job cuts have been announced, also the highest since 2020, with the government and retail sectors seeing the most reductions.

Bonds Commentary:  The 10-year U.S. Treasury yield hovered around 4.25%, near a two-month low, amid growing expectations of dovish Fed policy and rising fiscal concerns. Fed Chair Powell maintained a cautious stance on rate cuts, citing tariff-driven inflation as a key reason for delay. The Senate’s approval of a tax-and-spending bill projected to add $3.3 trillion to the national debt also influenced sentiment. Investors now await key labor market data for further insight into the Fed’s next move.

Futures Update:  U.S. stock futures edged higher as investors assessed the impact of President Donald Trump’s newly passed tax-and-spending bill while awaiting key labor market data. Major indexes showed modest gains, with the Dow Jones, S&P 500, and Nasdaq futures all posting slight increases. In the previous session, markets traded within tight ranges and ended with mixed results.

After trending higher over the past several sessions, major U.S. stocks showed a mixed performance during Tuesday's trading. The S&P 500 declined by 6.92 points, or 0.11%, closing at 6,198.02. From a technical analysis perspective, the index appeared to be consolidating yesterday, as previously mentioned, and it may continue to trade sideways today. Additionally, the 14-period RSI has entered overbought territory, which could trigger some profit-taking in the near term. Key support is seen around 6,000, with resistance expected near 6,300.