Global markets enter Thursday on a somewhat firmer footing after several sessions dominated by rising bond yields, higher oil prices and renewed U.S.-Iran tensions. Wall Street rebounded Wednesday, with the S&P 500 gaining 0.46%, the Nasdaq 0.45% and the Dow 0.56%, while the Russell 2000 outperformed with a 1.1% rise. Nvidia gained 3.2%, Micron rose 2.4%, and Dell surged almost 16% after raising its outlook.
Asian equities are mostly higher this morning. MSCI's Asia-Pacific index excluding Japan is up roughly 0.8%, with South Korea among the strongest markets and gains also visible in Hong Kong and mainland China. U.S. and European index futures, however, are almost unchanged as investors remain cautious ahead of several important economic releases.
The bond market remains the key driver. The U.S. 10-year Treasury yield has eased toward 4.78% after reaching multi-year highs earlier this week. That decline is giving equities some breathing room, but yields remain historically elevated. Markets now see roughly a two-thirds probability of a 25-basis-point Fed rate increase this month — a sharp repricing from only a week ago.
Oil remains one of the Fed's biggest complications. Brent is trading around $95 a barrel and WTI near $90.6, supported by renewed U.S.-Iran tensions. Persistently high energy prices could feed back into transportation, manufacturing and consumer inflation, making it harder for the Fed to remain patient.
Gold continues to show considerable strength, rising more than 1% toward $4,430–$4,440 an ounce as Treasury yields and the dollar ease while geopolitical demand remains elevated. Silver is also strong near $66 an ounce.
Crypto markets are rebounding as well. Bitcoin has recovered above $77,500 after briefly falling toward $76,400, while XRP is outperforming among major tokens. However, underlying spot demand remains somewhat fragile, with recent Bitcoin ETF outflows suggesting the $76,000–$77,000 zone remains an important support area.
Broadcom is also in focus following earnings. The company delivered exceptionally strong AI-chip growth and raised its AI revenue outlook to roughly $115 billion for fiscal 2027 and $230 billion for 2028. Yet the stock slipped after hours because near-term revenue guidance fell slightly short of extremely elevated expectations — another reminder that strong AI growth alone is no longer always enough to impress investors.
In Israel, the TA-35 gained 1.3% Wednesday to around 4,202, following the Bank of Israel's surprise 25-basis-point rate cut to 3.25% earlier this week. With Israeli inflation at only 1.5% in July, the Bank of Israel currently has more flexibility to ease policy even as several major global central banks face renewed pressure to tighten.
Today's U.S. calendar is busy. Weekly jobless claims, trade data and revised productivity and labor-cost figures arrive at 8:30 a.m. ET, followed by the ISM Services PMI at 10:00 a.m. ET. The week's decisive event, however, remains Friday's U.S. employment report. Following softer private-sector employment data, any meaningful surprise could quickly move Treasury yields, the dollar, gold and technology stocks.
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