U.S. Indexes ultimately closed mixed on Wednesday, with the NASDAQ 100 in the green while the S&P 500 finished marginally lower. The Dow and Russell 2000 were the clear laggards. Sector performance was predominantly weaker, although Technology and Energy closed in positive territory, while Materials underperformed amid broad weakness in metal prices. Technology was supported by gains in Broadcom (AVGO) after the company signed a deal worth more than USD 30 billion develop and supply chips for Apple (AAPL), helping underpin the NASDAQ despite broader market weakness. The primary driver throughout the session was the renewed escalation in Middle East tensions. Overnight, the US struck targets in southern Iran, prompting Tehran to retaliate with attacks on US military sites in the Gulf. Later in the day, President Trump said he believed the ceasefire was over, further lifting geopolitical risk sentiment. Also, in late trade, explosions were heard across southern Iran. The renewed tensions pushed crude prices higher, reigniting inflation concerns and weighing on Treasuries, while also limiting demand for precious metals as higher Treasury yields offset the typical safe-haven bid. Despite the geopolitical backdrop, the Dollar failed to benefit, with the New Zealand Dollar leading G10 gains following the RBNZ’s hawkish rate hike overnight, while the Japanese Yen underperformed. Elsewhere, the June FOMC Minutes generated little market reaction but reinforced the hawkish tone delivered at last month’s meeting, highlighting the broad range of views among policymakers on the appropriate future path for interest rates. The USD 39 billion 10-year Treasury auction was also met with strong demand but had little impact on broader price action, with markets remaining focused on developments in the Middle East. The FOMC Minutes largely echoed the hawkish June press conference and showed the committee was divided about the outlook for rates, similar to what the dot plots suggested. A few said that there was a case for hiking rates but ultimately supported maintaining rates in June. Meanwhile, most pointed to a scenario of stable labour conditions and elevated inflation, where the Fed would need to tighten policy. Meanwhile, those who felt inflationary pressures would dissipate and return to 2%, almost all said it would be appropriate to maintain or eventually lower rates. Regarding the level of restrictiveness, several said they did not see it as restrictive, while a few others said they saw it as slightly restrictive. Regarding the statement changes, a majority saw advantages of shortening the statement, and some welcomed the opportunity to review communication tools and practices. Most preferred not to repeat the easing bias within the statement. Summarising the Minutes, Wall Street Journalist Timiraos said, “The June FOMC minutes are interesting: they frame the committee’s divide as a split over the outlook, not necessarily over tactics’’. Elsewhere, Oil closed higher by 5% while Gold ended Wednesday’s session with a 1.3% loss.
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For anyone following my Platinum Service it made 485 points yesterday and is now ahead by 2454 points for July after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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