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U.S. Markets Rally on Nvidia Earnings; Currency and Commodities Markets Respond to Economic Indicators

Market Update - Daniel Ang The Accidental Trader Traders Academy International 2

Thursday’s market movements were shaped by strong earnings from Nvidia, economic indicators, and expectations ahead of Federal Reserve Chair Jerome Powell’s speech. Currency markets responded to mixed global PMI data, commodities reflected demand dynamics, and digital assets displayed renewed vigor. As market participants turn their attention to Friday’s key events, they will be closely monitoring policy indications and further economic data to guide their next investment decisions. The market landscape remains complex, with varying cross-asset correlations, presenting both opportunities and challenges for traders.

Equity Markets:
U.S. equity markets closed significantly higher, fueled by Nvidia’s robust Q3 revenue forecast, which surpassed Wall Street’s expectations. Shares of Nvidia leaped 9% in after-hours trading, following a more than 3% gain at close.

The Nasdaq Composite soared 1.6% to 13,721, the S&P 500 rallied 1.1% to 4,436, and the Dow Jones Industrial Average climbed 0.5% to 34,473. Investors are now eagerly awaiting Federal Reserve Chair Jerome Powell’s speech on Friday, which may offer insights into the central bank’s future interest rate actions.

Currency Markets:
The U.S. Dollar retreated, following the flash U.S. Composite PMI index decline to 50.4 in August from 52 in July, marking the largest drop since November 2022. Despite a resilient labor market and consumer spending, recent data signals a more cautious economic outlook.

The U.S. Dollar Index (DXY) decreased 0.14% to 103.45, after hitting a two-month high earlier. Disappointing business activity in Europe pressured the Euro and British Pound, with EUR/USD softening to 1.0802 and GBP/USD dropping to 1.2623.

USD/JPY fell 0.71% to 144.85, generating speculation of potential intervention by Tokyo to support its currency.

Commodities Markets:
Crude oil prices declined 1% as concerns over demand outweighed positive U.S. stock data. Brent crude settled down at $83.21 a barrel, while West Texas Intermediate (WTI) landed at $78.89.

A unique convergence in the silver market pushed COMEX September Silver to $24.355/oz, a nearly 4% gain. Influenced by the Chinese Yuan and industrial demand, silver experienced its best day since mid-July. Gold also rose 1% to $1,946/oz.

Digital Assets:
Bitcoin (BTC/USD) surged more than 3% to above $26,600, recovering part of last Thursday’s losses, while Ether (ETH/USD) rose 3.5% to the $1,700 level.

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