U.S. Indexes lower again on Wednesday as higher oil prices and Treasury yields weighed on sentiment. The Russell was the laggard, while the equal-weight S&P declined by 1%. The majority of sectors were also lower, with Industrials, Consumer Discretionary and Real Estate underperforming, while Energy was the only sector to close higher amid a roughly USD 3/bbl rise in WTI. Technology and Communication Services also outperformed but still closed marginally lower. Regarding stock specifics, the Apple (AAPL) event was in focus, where the Company unveiled the foldable iPhone, iPhone 18 Pro and Pro Max, A20 Pro chip, AirPods 5, Apple Watch Series 12 and Ultra 4. Shares were sold throughout the event before paring losses once it concluded, with the stock closing lower by 0.3%, well off its earlier lows. Energy prices were buoyed by geopolitical escalations, with the US and Iran striking tankers overnight, while Iran also targeted US bases in the region, helping Brent reclaim USD 100/bbl. Treasury yields were firmer across the curve as oil prices rose, although the majority of the move occurred after the US Treasury’s buyback announcement for Thursday’s 10–20-year operation. Treasury announced it will purchase a maximum of USD 6 billion of 10–20-year coupons, disappointing the market. Many had been expecting between USD 4-6 billion, although some expectations were as high as USD 10 billion. The announcement saw yields rise, supported the Dollar, and weighed on stocks and Gold. The subsequent cheapening in Treasuries provided additional concession ahead of the 10-year auction, which ultimately saw a very strong reception. The auction stopped through the WI by 1.5bps, the largest stop-through since April 2025, while dealer participation was exceptionally low as both direct and indirect demand improved. In FX, the Japanese Yen was supported by punchy commentary around intervention from US Treasury Secretary Bessent overnight, while the New Zealand Dollar lagged once again. The Canadian Dollar was hit despite rising oil prices as trade tensions with the US continue to mount after the US announced on Tuesday it will ban imports of some Canadian alcohol, dairy products and motorcycles. The Dollar was little changed overall, although it moved off lows after the Treasury’s buyback announcement lifted yields. Gold prices were bid and headed into APAC trade around USD 4,400/oz, off earlier highs of USD 4,435/oz. The precious metal was initially pressured by the rise in yields and the Dollar following the buyback announcement before chopping into the close. Attention now turns to the US PPI report on Thursday, alongside the ECB rate decision and Treasury’s 10–20-year buyback operation. The highlight of the week will likely be the US CPI report on Friday, which will help further shape Fed rate expectations ahead of next week’s meeting. Markets currently assign a 60% probability of a 25 basis points rate hike. Elsewhere, Oil closed higher by 4% while Gold ended a volatile session unchanged.
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For anyone following my Platinum Service it made 490 points yesterday and is now ahead by 1300 points for September after ending the month of August with a gain of 2645 points after closing July with a gain of 8031 points, 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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