Global markets mostly advanced as easing US rate-hike expectations boosted risk appetite, driving gains across Wall Street and Europe. Technology and crypto stocks outperformed in the US, while Asia-Pacific was mixed as a stronger yen pressured Japan despite gains in South Korea and Australia.
Fed relief fuels Wall Street
US stocks rallied as easing Treasury yields and reduced rate-hike expectations boosted risk appetite despite elevated oil prices. The DOW gained +1.2%, while the S&P 500 rose +1.1%, and the NASDAQ advanced +1.6%. Snowflake surged +18.3% after beating quarterly expectations and issuing strong guidance, while Tesla jumped +6.9% ahead of its Cybercab launch event. SpaceX (+7.8%) and Palantir (+7.9%) also rallied amid broader technology strength. NVIDIA gained +2.4% after agreeing to acquire open-source AI platform Hugging Face for nearly US$13 billion, while Meta rose +3.7% after launching its Muse Spark 1.3 AI model. Broadcom fell -2.9% after its outlook failed to satisfy investors despite strong AI demand. Bitcoin (+4.6%) climbed above US$81,000 as yields eased, driving Coinbase (+9.7%) and Robinhood (+14.8%) higher. Meanwhile, ISM services activity rose to 55.4 in August, its strongest reading in six months, while initial jobless claims edged up to 206,000 ahead of Friday’s jobs report. President Trump said renewed US–Iran hostilities would not last ‘too long’, despite continued attacks in the region. In rates markets, the US two-year Treasury yield lost -5bp to 4.334%, while the 10-year yield fell -3bp to 4.764% after Federal Reserve Governor Christopher Waller cited disinflation and favoured keeping rates unchanged in September, prompting traders to pare rate-hike expectations.
European stocks bounce back
European markets advanced as stabilising oil prices and bond yields eased recent inflation and monetary policy concerns, despite continued Middle East uncertainty. The STOXX 600 gained +0.5%, while the UK’s FTSE 100 added +0.7%, Germany’s DAX rose +0.6%, and France’s CAC 40 crept +0.1%. SAP (+2.6%) and Siemens Energy (+2.4%) advanced. Meanwhile, the Dutch central bank transferred 86 tonnes of Gold from US and Canadian reserves to the Bank of England to strengthen crisis preparedness amid heightened geopolitical uncertainty.
Yen gains split Asia-Pacific
Asia-Pacific markets were mixed as easing bond-market pressure supported Australia and South Korea, while a stronger yen weighed on Japan. South Korea’s KOSPI gained +0.3%, with KB Financial Group (+5.2%) higher although semiconductor tariff concerns persisted. Japan’s Nikkei 225 slipped -0.2% as the yen strengthened around +1.0% against the US dollar to a one-month high of ¥156.34 amid intervention speculation. China’s Shanghai Composite finished flat, while Hong Kong’s Hang Seng fell -0.5%, with Trip.com dropping -5.4%. Australia’s ASX 200 gained +0.5%, while New Zealand’s NZX 50 fell -0.6%, although Vulcan Steel surged +6.1%, while Winton Land gained +3.3% after resuming trading and appointing a new independent chair.
Oil holds firm as Iran attacks continue despite Trump optimism
WTI Crude gained +0.5% to US$91.47/bbl, Gold jumped +2.1% to US$4,477.05/oz, and Iron Ore lost -1.6% to US$97.72/MT.
Today's Events
- US: Unemployment Rate (August 2026)