Nasdaq hits record as gold holds above $4,000

The Nasdaq closed at a record high overnight, lifted by strong gains in chipmakers including AMD and Dell, while the S&P 500 also advanced as investors assessed the Federal Reserve’s latest meeting minutes. Gold steadied at $4,037 per ounce early on Thursday after briefly touching $4,059, supported by expectations of further US rate cuts and confirmation of a Gaza ceasefire deal. Oil prices were little changed, with Brent crude at $66.27 a barrel as traders weighed the ceasefire against stalled Ukraine peace talks and new data showing US petroleum demand at its highest since December 2022.

Equities

Britain’s FTSE 100 closed 0.7% higher at a record 9,548.87 on Wednesday, supported by strong gains in banking and mining shares. Lloyds Banking Group rose 3.7% after regulators proposed a smaller-than-expected compensation package related to motor finance mis-selling.

The update lifted sentiment across the sector, with Barclays up 1.1%, HSBC rising 1.5% following a Morgan Stanley price target increase, and Close Brothers jumping 5.4%. Gold miners tracked record bullion prices above $4,000 per ounce, with Endeavour Mining up 2.7% and Fresnillo 3% higher. Industrial metal miners gained 1.7% in line with firmer copper prices.

Property shares fell 1.9%, led by Unite Group, which dropped 10.8% to a five-year low after reporting quarterly rental growth of 4%, down from 8.2% a year earlier. AstraZeneca ended the session flat after giving up earlier gains, while Vertu Motors slipped 2% following a profit warning linked to a cyberattack at Jaguar Land Rover.

Across the Atlantic, the S&P 500 closed 0.58% higher at 6,753.72 and the Nasdaq Composite rose 1.12% to 23,043.38, while the Dow Jones Industrial Average was unchanged. Gains in technology outweighed weakness in energy and consumer staples as investors awaited the Federal Reserve’s meeting minutes for direction on interest rates.

Dell Technologies climbed 9.1% after several brokerages raised price targets. AMD surged 11.4%, extending its rally to a 43% gain for the week, while Datadog rose 6.2% after an upgrade from Bernstein. Freeport-McMoRan advanced 5.3% after Citigroup upgraded the stock to “buy”.

Fair Isaac Corp fell 9.8% after Equifax announced plans to offer lower-priced mortgage credit scores. Intercontinental Exchange dropped 2.2% after Barclays cut its price target. Joby Aviation fell 8.1% after pricing a $514 million share sale at a 10.9% discount to its last close.

Surging bullion prices lifted US-listed gold miners, with Newmont up 1.7% and Gold Fields rising 3.7%. Trading volumes were strong, with 20.7 billion shares changing hands across US exchanges, above the recent 20-day average. Investors now turn their attention to the upcoming third-quarter earnings season and the Federal Reserve’s October policy meeting.

Forex & Commodities

The dollar eased slightly but remained near its strongest level in almost a year, supported by weakness in the yen and the euro. The Japanese currency traded at ¥152.55 to the dollar after falling to an eight-month low of ¥153 overnight, pressured by expectations that incoming prime minister Sanae Takaichi will maintain loose fiscal and monetary policy.

The euro rose modestly to $1.1644, recovering after three sessions of losses as France prepared to name a new prime minister following the resignation of Sébastien Lecornu. Sterling was little changed at $1.3416 after touching a two-week low on Wednesday, while the Australian dollar edged higher to $0.6608. The New Zealand dollar held near a six-month low at $0.5803 after the Reserve Bank of New Zealand cut rates by 50 basis points and signalled that further easing could follow.

Gold traded steady at $4 037 per ounce early on Thursday, holding above the $4 000 mark reached for the first time a day earlier. Prices briefly touched a record $4 059 on Wednesday as investors assessed prospects for further US rate cuts and news of a Gaza ceasefire agreement between Israel and Hamas.

Oil prices were broadly unchanged on Thursday morning. Brent crude stood at $66.27 a barrel and US West Texas Intermediate at $62.54, as traders weighed the Gaza ceasefire against stalled Ukraine peace talks and fresh data showing US petroleum demand at its highest since December 2022.