Spot gold traded at $4,340.98 after reaching a session high of $4,353.78, as August retail sales, annual sales and core sales all exceeded economists’ expectations.
Wall Street expects the Federal Reserve to lift rates for the first time since July 2023 as stubborn inflation, rising oil prices and a firmer labor market reshape policy expectations and pressure both stocks and Treasury markets.
The contract rate on a 30 year mortgage reached 6.97% as purchase and refinancing applications declined, while rising energy prices, inflation concerns and surging Treasury yields placed fresh pressure on the already sluggish US housing market.
Stocks moved modestly higher as investors prepared for a closely watched Federal Reserve decision, with futures markets strongly favoring a rate increase while oil prices, Treasury yields, consumer spending and several major corporate developments shaped trading.
New Zealand’s top ranked sovereign wealth fund delivered a 14.2% annual return, yet CEO Jo Townsend warned that powerful U.S. equity gains may fade as the fund lowers expectations and emphasizes diversification.
Gold remained under pressure after the Empire State Manufacturing Survey fell sharply below expectations, as traders focused instead on a potential Federal Reserve rate increase, a stronger U.S. dollar, and 10 year bond yields above 5%.
The 10 year Treasury yield reached 5.02%, its highest level since 2007, prompting fund managers to reduce bullish stock positions and raise cash while keeping faith in earnings, artificial intelligence investment, and economic growth.
Expectations for Federal Reserve policy have swung sharply, with 86% of CNBC survey respondents anticipating a hike and 55% forecasting multiple increases as oil prices surge and broader inflation refuses to cool.
The 10-year Treasury yield reached 5.041% as surging oil prices fueled inflation fears and traders assigned greater than 92% odds to a 25 basis point Federal Reserve rate increase. Longer maturity yields also hit levels unseen since 2007.
Gold and silver sank as surging oil prices, stubborn inflation and Treasury yields approaching 5% strengthened expectations for a Federal Reserve rate increase, overpowering safe haven demand generated by escalating uncertainty in the Middle East.
Warnings from OpenAI and Anthropic leaders jolted the AI trade, sending SanDisk down 5% and Nvidia down 3% in premarket trading as executives raised fears about lost control, concentrated power, and development moving faster than safety measures.
Bank of America shares slid 5% after CEO Brian Moynihan forecast a greater than 10% drop in third quarter investment banking fees, marking a dramatic slowdown from the bank’s blockbuster second quarter performance.
Trump says existing government powers can police AI companies without new restrictions, while Amodei and other technology leaders urge slower development amid warnings about safety, cyberattacks, and the escalating competition with China.
Kevin Warsh must rally a divided Federal Open Market Committee behind an expected rate increase as officials debate persistent inflation, temporary price shocks and whether tighter policy should continue beyond this week’s closely watched decision.
The 10 year Treasury yield briefly crossed 5% as investors weighed persistent inflation, enormous debt issuance and a 90% probability of a Federal Reserve rate increase, while stocks continued to show resilience despite mounting pressure in the bond market.
Paying off a mortgage is supposed to mark the end of a long financial climb. Yet the FBI [..]