Risk appetite returned to markets over the last 24 hours, with the S&P 500 rising +0.37% as stronger US data and optimism over a potential end to the government shutdown lifted sentiment.
The ADP private payrolls report surprised to the upside at +42k (vs. +30k expected), while the ISM Services index jumped to 52.4 (vs. 50.8 expected) with new orders at a 12-month high, easing fears of an economic slowdown after Monday’s weak manufacturing data.
The improved tone triggered a broad risk-on rally:
US HY spreads tightened (-9bps) for the first time in a week.
Bitcoin rebounded (+3.38%) after recent losses.
Asian equities followed through overnight, with the Nikkei up +1.48% and Hang Seng +1.61%.
Despite solid data, Treasuries rallied as markets priced a higher chance of a December Fed rate cut, sending the USD to its biggest 3-week drop.
In corporate news, SpaceX agreed to buy EchoStar’s AWS-3 spectrum licenses for $2.6bn in stock, while EchoStar booked a $16.5bn non-cash charge tied to its 5G network wind-down.
However, some valuation concerns are re-emerging — the “Buffett Indicator” now shows US equities worth over twice GDP, with total market cap around $72tn, underscoring stretched levels after a +36% rally since April lows.
Bottom line: The S&P 500 regained momentum as resilient US data reignited risk appetite and rate-cut hopes, though extended valuations remain a potential headwind.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
The ADP private payrolls report surprised to the upside at +42k (vs. +30k expected), while the ISM Services index jumped to 52.4 (vs. 50.8 expected) with new orders at a 12-month high, easing fears of an economic slowdown after Monday’s weak manufacturing data.
The improved tone triggered a broad risk-on rally:
US HY spreads tightened (-9bps) for the first time in a week.
Bitcoin rebounded (+3.38%) after recent losses.
Asian equities followed through overnight, with the Nikkei up +1.48% and Hang Seng +1.61%.
Despite solid data, Treasuries rallied as markets priced a higher chance of a December Fed rate cut, sending the USD to its biggest 3-week drop.
In corporate news, SpaceX agreed to buy EchoStar’s AWS-3 spectrum licenses for $2.6bn in stock, while EchoStar booked a $16.5bn non-cash charge tied to its 5G network wind-down.
However, some valuation concerns are re-emerging — the “Buffett Indicator” now shows US equities worth over twice GDP, with total market cap around $72tn, underscoring stretched levels after a +36% rally since April lows.
Bottom line: The S&P 500 regained momentum as resilient US data reignited risk appetite and rate-cut hopes, though extended valuations remain a potential headwind.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.