Market Snapshot: Earnings Momentum, Trade Tensions, and Fed Policy Shape Investor Sentiment

Image Source : Krish Capital Pty Ltd

Index Update:  Palantir shares jumped over 4% in after-hours trading after beating Q2 earnings expectations and raising its outlook on strong AI demand, while Hims & Hers Health dropped around 13% due to a revenue miss. Investors are now awaiting key earnings reports from major companies like AMD and Pfizer. Earlier, U.S. markets rallied sharply, driven by growing hopes for a September Fed rate cut following weak labor data

Market Movers:  On Monday, the top gainers were Verb Technology Company, Inc (+114.72%), followed by Psyence Biomedical Ltd. (+92.37%). On the contrary Hub Cyber Security Ltd. (-31.81%) and Bollinger Innovations, Inc. (-31.41%) declined the most the same day.

Commodities Update:  Oil prices extended their losing streak, with both WTI and Brent crude falling for a fourth straight session amid rising concerns of oversupply. The decline followed OPEC+’s decision to increase output by 547,000 barrels per day in September, fully reversing prior production cuts. Additional pressure came from U.S. efforts to curb India’s imports of Russian oil, raising fears of supply disruptions, while trade tensions and weak global economic signals added to demand uncertainty.  Gold prices edged slightly lower but stayed near recent highs, supported by expectations of a U.S. interest rate cut in September. A weak jobs report, dovish comments from Fed officials, and concerns about central bank independence—after a recent resignation—have strengthened bets on easing. Meanwhile, escalating trade tensions and new tariffs from the U.S. continue to boost gold’s safe-haven appeal.

Macro Update:  The U.S. Logistics Manager’s Index fell to 59.2 in July, signaling a broader slowdown in the logistics sector. The decline was mainly driven by slower growth in inventory costs and levels, leading to increased warehousing capacity. Smaller firms and upstream players saw the most impact, while larger companies maintained leaner inventories to control costs. Transportation utilization rose, but capacity and prices remained steady, reflecting a gradual freight recovery throughout 2025.

Bonds Commentary:  The 10-year U.S. Treasury yield remained around 4.2%, near a three-month low, as investors weighed global trade tensions and shifting Fed policy expectations. Weak labor data, political developments at the Fed, and uncertainty around upcoming economic reports have reinforced speculation about a possible rate cut in September.

Futures Update:  U.S. stock index futures moved slightly higher, extending Wall Street's rebound as the corporate earnings season progresses. Major indexes had posted strong gains in the previous session, recovering from a sharp sell-off driven by trade concerns and weaker U.S. employment data.

Stocks experienced a sharp rally early in Monday's trading session and continued to perform strongly throughout the day. This upward momentum helped the major indices recover a significant portion of the declines from the previous two sessions. The S&P 500 surged by 91.93 points, or 1.47%, closing at 6,329.93. From a technical perspective, the index found support at key levels and gradually moved higher, indicating the potential for further short-term gains. The 14-day RSI remains around the midpoint, suggesting room for additional upward movement. Support levels are reinforced by major moving averages below the current price, with critical support near 6,188 and resistance expected around 6,444.