Closing Recap

U.S. stocks finished mostly higher, with the Nasdaq climbing to a new record, as strength in semiconductors and large cap tech offset broader market caution; gold surged to another all-time high and Treasury yields fell as investors solidified bets on an imminent Fed rate cut. In currency markets, the U.S. dollar tumbled to a seven-week low, with the Euro rallying towards 1.18 and the British Pound also showing notable strength.

Key Takeaways 

• Nasdaq Hits New Record High: The Nasdaq Composite led the market higher, supported by a rally in semiconductors and key mega-cap tech names (AMZN, MSFT). 
• Fed Rate Cut Hopes Drive Gains: Markets continue to be propelled by high expectations for a Federal Reserve rate cut at next week’s meeting, a narrative reinforced by last week’s weak jobs data. 
• Gold Surges to All-Time High: Gold prices climbed to another new record, benefiting from a weaker U.S. dollar, falling Treasury yields, and its appeal as a safe haven amid ongoing political and trade uncertainties. 
• Focus on Inflation & Apple Event: Investor attention now turns to key U.S. inflation data (PPI Wednesday, CPI Thursday) and Apple’s highly anticipated iPhone event tomorrow. 
• Forex Pairs: Currency markets were active, with the U.S. dollar falling to a seven-week low, the Euro rallying towards 1.18, and the Japanese Yen strengthening amid ongoing political uncertainty in Japan. 
• Yields Fall to 10-Month Lows: Treasury yields continued their decline, with the 10-year yield hitting a 10-month low, as investors priced in a more dovish Fed. 
• Oil & Crypto Gain: Crude oil prices edged higher, and cryptocurrencies like Bitcoin also advanced to start the week.

Market Overview

U.S. equity markets started the week on a positive note, with the Nasdaq Composite climbing to a new all-time high, while the S&P 500 also posted solid gains. The market’s upward momentum is being driven by a powerful combination of factors: continued strength in the technology sector, particularly semiconductors, and rising conviction among investors that the Federal Reserve is poised to cut interest rates at its policy meeting next week. Following last week’s surprisingly weak jobs report, traders are now pricing in a near-certainty of at least a 25-basis-point cut, with some even speculating on a larger 50-basis-point move. 

Index	Up/Down	% Change	Last
DJ Industrials	114.09	0.0025	45514
S&P 500	13.67	0.0021	6495
Nasdaq	98.31	0.0045	21798
Russell 2000	3.85	0.0016	2394

It was another day of waiting for major market-moving catalysts, with no significant U.S. economic data released. This allowed the focus to remain on the broader macro narrative. In the currency markets, the U.S. dollar extended its recent decline, falling to a seven-week low, which in turn provided a tailwind for commodities. Gold surged to another new record high, continuing its impressive run. 

In the political arena, developments in Europe and Japan are being closely watched. In France, the government faces a confidence vote, which is creating some uncertainty for the Euro, though the currency has rallied on rate cut hopes. In Japan, the Yen remains under pressure following Prime Minister Shigeru Ishiba’s resignation, creating a period of political instability. With the Fed in its pre-meeting blackout period, investors are now looking ahead to key inflation data later this week and Apple’s highly anticipated product event tomorrow for further direction.

Economic Calendar

The U.S. economic calendar is quiet today, with the main focus on events later in the week. Today’s Calendar: 

• NY Fed Survey of Consumer Expectations (Aug): 1-year inflation expectations rose to 3.2%. 

Key This Week: 

• Apple (AAPL) iPhone Event (Tuesday). 
• Oracle (ORCL) Earnings (Tuesday). 
• U.S. Producer Price Index (PPI) for August (Wednesday). 
• U.S. Consumer Price Index (CPI) for August (Thursday). 
• European Central Bank (ECB) Rate Decision (Thursday). 
• FOMC Meeting (Next Week, Sept 16-17).

Commodities, Currencies, and Treasuries 

Gold prices surged to another new all-time high, with the December futures contract gaining $24.10 (+0.66%) to settle at $3,677.40 per ounce. The rally was fueled by a weaker U.S. dollar, falling Treasury yields, and strong safe-haven demand amid ongoing political and trade uncertainties. Crude oil prices recovered some of last week’s losses, with WTI settling up $0.39 (+0.63%) at $62.26/bbl, supported by a modest OPEC+ output hike and potential for more sanctions on Russia. 

Asset	Up/Down	Unit / % Change	Last
WTI Crude	0.39	USD/bbl	62.26
Brent	0.53	USD/bbl	66.02
Gold	24.1	USD/oz	3677.4
EUR/USD	0.0047	USD	1.1764
USD/JPY	0.01	JPY	147.39
10-Year Note	-0.039	%	0.04045

The U.S. Dollar Index (DXY) fell -0.35% to 97.43, extending last week’s decline as dovish Fed expectations weighed on the currency. The Euro climbed towards $1.18, while the Yen also strengthened against the dollar. U.S. Treasury yields continued to fall, with the 10-year yield dropping over 4 basis points to 4.043%, hitting a 10-month low, as investors priced in Fed easing. Cryptocurrencies like Bitcoin also advanced to start the week.

Looking Ahead 

The market will be keenly focused on Apple’s product launch event tomorrow afternoon and Oracle’s earnings after the bell for tech sector direction. The primary macro events for the week are the U.S. inflation reports (PPI on Wednesday, CPI on Thursday), which will be the final major data points influencing the Federal Reserve’s policy decision next week. The ECB’s rate decision on Thursday will also be a key event for global markets and currency traders.