Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
PODÍL
US stocks surged higher on Tuesday following reports that a peace deal with Iran is close to being reached. Scott Bessent said it perhaps the most clearly, claiming there was "a chance we may have a deal today or tomorrow” to reopen the Strait of Hormuz. Words of conviction from the Treasury Secretary, but hopes of peace in the Middle East have been dashed against the rocks before. Nevertheless, markets have chosen the path of optimism this time around and Wall Street cracked out the champagne early during yesterday’s session. The positive sentiment was enough to buoy the Dow Jones and S&P 500 to fresh record highs after the two indices climbed more than 1.7% higher. The Nasdaq 100 was the biggest winner of the lot, gaining 3.3% yesterday, although the tech-heavy index remains somewhat off its own record high established back in early June. US markets had the additional boon of Monday’s ISM manufacturing PMI, which indicated a sector firmly in expansion with a read of 55.6. Asian markets are understandably bullish this morning, with the Nikkei 225 and Kospi indices gapping higher, eager to seize upon the pervading sense of positivity.
Crude oil prices took a predictable hammering on Tuesday, with Brent Crude crashing down to $78 per barrel and WTI seeing lows of $75. Foreign exchange markets, still reeling from the massive joint intervention on the Japanese yen late last week, were content to ignore the latest developments surrounding Iran, with the DXY remaining relatively stable throughout the day. Gold was similarly unfazed, gaining around half a percent to reach $4,077 per ounce, while silver showed a little more ambition by rising 2.3% to $59.50 per ounce. Both were outclassed by platinum and palladium, which gained over 6% apiece to reach highs not seen for over a month. Bitcoin is once again above $64,000 as of the early hours of this morning, although crypto markets as a whole have absolutely no reason to celebrate, as the prospect of a vote on the Clarity Act looks increasingly doomed.
This week’s earnings offerings also helped spur markets on yesterday, from which Palantir (PLTR) emerged as the clear victor. The software company obliterated expectations in its quarterly earnings report released on Monday night, causing a dramatic 30% surge during yesterday’s session. Advanced Micro Devices (AMD) and SpaceX (SPCX) also performed admirably ahead of their own earnings, gaining 7% and 9% respectively, but unfortunately, both reports would end up severely disappointing investors after the figures were released after the bell, causing both stocks to give back all their gains during extended trading hours. The AI trade continues to be unforgiving, punishing SpaceX just as it has punished many other companies for aggressive infrastructure spending, while AMD is being torn apart simply for not beating expectations by a wide enough margin. Fellow chipmakers SanDisk (SNDK) and Western Digital (WDC) are scheduled to report after market close later today and both will likely face the same level of scrutiny as AMD. The reports will serve as a barometer for memory demand, showing how much their customers, and by extension the tech sector as a whole, is willing to pay.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
Reviewed by RADEX MARKETS
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