Wall Street Holds Record Highs as Easing Rate Concerns Offset Technology-Sector Weakness

Index Update

US stocks reached fresh records on Wednesday, with the Dow rising 400 points and the S&P 500 holding firm as easing Treasury yields, reduced energy inflation concerns and strong corporate earnings supported sentiment. Arista Networks gained 7% and Eli Lilly surged 9%, while the Nasdaq edged lower as SpaceX fell 13% on elevated AI spending concerns and AMD declined 5% despite strong data-centre growth.

Market Movers

Among the top-performing stocks of the session INLIF LIMITED. surged 97.17%, while Zhengye Biotechnology Holding Limited. rallied 84.37%. On the losing side, Suja Life, Inc. fell 46.18%, while SIMPPLE LTD. declined 42.78%, making them the weakest performers during the trading day.

Commodities Update

Crude oil prices steadied on Thursday after three consecutive declines, with WTI trading near USD 75 per barrel and Brent below USD 80. Markets weighed a temporary Iran–Oman shipping route through the Strait of Hormuz and optimism over a potential US–Iran agreement against persistent regional security risks, including tanker explosions and Houthi attacks. Rising US crude inventories and Saudi Aramco’s price reduction for Asian buyers further reinforced expectations of improving supply conditions.

Gold approached USD 4,300 per ounce and silver held above USD 62 on Thursday as lower oil prices eased inflation concerns following a partial reopening agreement for the Strait of Hormuz. Weaker-than-expected US private-sector employment prompted markets to reduce expectations to one Federal Reserve rate hike this year, supporting precious metals, although Fed Governor Lisa Cook maintained that further tightening may be necessary if inflation remains elevated.

Macro Updates

US Job Cuts Fall to a Two-Year Low

US employers announced 33,429 job cuts in July 2026, down 27% from June and 46% year over year, while year-to-date reductions fell 41% to 477,033. AI remained the leading reason for layoffs, with technology recording the highest cuts. However, planned hiring reached its strongest July level since 2022, indicating that AI is reshaping rather than broadly weakening the labour market.

Dollar Remains Near a Seven-Week Low

The US dollar index held around 99.6 as the partial reopening of the Strait of Hormuz lowered oil prices and eased inflation concerns, prompting markets to scale back expectations to one Fed rate hike this year. However, Fed officials maintained that further monetary tightening could be necessary if inflation remains persistently elevated.

Bonds Commentary

The US 10-year Treasury yield rose slightly to 4.63% as investors assessed the interest-rate outlook ahead of the US employment report. The probability of a September Fed rate hike declined to around 55%, while mixed labour-market signals and persistent US–Iran tensions continued to create uncertainty over inflation and monetary policy.

Futures Update

US stock futures were mixed on Thursday, with the S&P 500 flat and the Dow edging toward another record high as easing rate concerns and gains in Eli Lilly, Johnson & Johnson and Goldman Sachs supported sentiment. However, weakness in semiconductor stocks pressured the Nasdaq 100, while Western Digital plunged 17% on disappointing guidance and Sandisk fell nearly 10% after its results missed elevated expectations.

Stocks extended their recent rally in early trading on Wednesday, but the gains faded as selling pressure emerged throughout the session, dragging the major averages well off their highs, with the Nasdaq and S&P 500 closing in negative territory. Despite the pullback, the S&P 500 remains in a strong bullish trend after breaking out to fresh record highs and continues to trade comfortably above its 20-day EMA (7,515) and 50-day EMA (7,444). The 14-day RSI has improved to around 65, signaling healthy bullish momentum without entering overbought territory. As long as the index holds above the 7,680–7,700 support zone, the broader uptrend is expected to remain intact, although some near-term consolidation or profit-taking may occur before the index attempts to advance toward the 7,760–7,800 region.