Image Souce: Krish Capital Pty Ltd

Update

Gold hits a new record, soaring past $2,750/oz! Amid geopolitical tensions and macro uncertainties, investors flock to safe havens. The US election tightens the race, while central banks’ easing adds fuel. Meanwhile, WTI crude dips to ~$70/bbl as US stockpiles rise. Natural gas hovers near $2.30/MMBtu with mild weather ahead. Markets remain watchful.

Macro Update

Mortgage applications in the US dropped 6.7% last week, marking the fourth straight decline as rising interest rates take their toll. Refinance applications fell 8.5%, extending a 26% drop, while new home purchase applications also dipped over 5%. The 10-year Treasury yield hit 4.23%, its highest in 3 months, as market expectations shift for the Fed's approach. All eyes on the Fed’s Beige Book for insights.

Index Update

US stocks closed mostly flat on Tuesday as rising interest rate concerns and mixed earnings results kept markets in check. The S&P 500 and Dow dipped slightly, while the Nasdaq gained 0.2%. Treasury yields hit 4.22%—the highest since July—before pulling back.

Market Movers

Consumer staples saw gains, but industrials struggled, with GE Aerospace down 8.1%. Major movers included GM (+9.8%) after beating estimates, while Verizon (-5%) and Lockheed Martin (-6.2%) faced revenue misses. Eyes are on upcoming earnings from Tesla, Coca-Cola, and Honeywell.

Futures Update

US stock futures were muted on Wednesday as investors braced for a busy day of earnings, including from Tesla ,Texas Instruments  reported stronger-than-expected Q3 profits, lifting shares in after-hours trading, while Starbucks saw a decline after suspending its annual forecast. By 03:31 ET, Dow futures were down 115 points (0.3%), with S&P 500 and Nasdaq 100 mostly flat. The 10-year Treasury yield reached its highest level since July, driven by strong economic data, raising questions about the Federal Reserve's potential rate cuts this year.

Stocks managed a late rally on Tuesday, closing flat to slightly higher despite facing pressure from rising yields, crude oil prices and the U.S. dollar ($DXY). A strong start to the earnings season and widespread optimism about a potential Federal Reserve rate cut next month likely contributed to this resilience. The Nasdaq increasing by 33.12 points, or 0.2%, to finish at 18,573.13, while the S&P 500 dipped 2.78 points, or 0.05%, to close at 5,851.19. From a technical analysis standpoint, the S&P 500 is currently forming a rising wedge pattern. Given the rapid price movements supported by an upward trendline, caution is advisable at this juncture. Additionally, the 14-period RSI indicates a bearish divergence compared to the price action, reinforcing a negative outlook. Traders should keep an eye on key price levels, with resistance at 5,900 and support around 5,780.

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