Daily Market Snapshot: Fed Easing Shapes Equities, Commodities, and Yields

Source: Krish Capital Pty Ltd

Index Update

U.S. stocks rose Thursday, with the Dow up 0.27%, the S&P 500 gaining 0.48%, and the Nasdaq climbing 0.94%, driven by strength in technology, industrials, and communication services. Intel surged 23% after Nvidia announced a $5 billion chip partnership, lifting Nvidia 3.5%, while Palantir, Coinbase, and CrowdStrike also posted strong gains. Earlier in the week, the Fed cut rates by 25 bps and signaled two more reductions in 2025, with just one in 2026. With no major economic data or earnings due Friday, markets remained focused on monetary policy and sector momentum.

Market Movers

On Thursday, the top gainers were Brera Holdings PLC. (+225.49%), followed by Cardlytics, Inc. (+92.66%). On the contrary Replimune Group, Inc (-39.40%), and ChowChow Cloud International Holdings Limited (-36.71%) declined the most the same day.

Commodities Update

Oil prices fell for a third straight session on Friday, with WTI around $63.3 per barrel and Brent near $67.2. The decline came as President Trump renewed calls for lower prices, favoring cheaper oil over new sanctions on Russia, which eased supply concerns despite recent Ukrainian strikes on Russian infrastructure. At the same time, U.S. inventory data showed a sharp crude draw on strong exports but also revealed distillate stocks at their highest since January, adding to demand worries.

Gold steadied near $3,640 per ounce, consolidating after a two-day drop that halted a four-week rally. Investors digested the Fed’s first rate cut since December, which Powell described as a measured response to a cooling labor market. While easing supports bullion, caution over inflation slowed rate-cut expectations. Despite the pause, gold remains up about 39% in 2025, boosted by Fed easing prospects, geopolitical risks, central bank buying, and strong Chinese demand.

Macro Updates

Dollar Holds Steady After Fed Signals Caution

The dollar index hovered around 97.4 on Friday, stabilizing after two sessions of gains as the Fed struck a less dovish tone than expected. The central bank cut rates by 25 bps, projected two more reductions this year and just one in 2026, with Powell emphasizing a cautious, risk-managed approach amid labor market weakness. The greenback was further supported by falling jobless claims, while policy divergence abroad — with Canada cutting rates and the Bank of England holding steady — kept the index on track to end the week largely unchanged.

Foreign Inflows into U.S. Securities Remain Modest in July

In July 2025, net foreign acquisitions of U.S. securities and banking flows totaled an inflow of $2.1 billion. Foreign investors boosted holdings of long-term U.S. securities by $78.8 billion, led by $72.4 billion from private investors and $6.4 billion from official institutions. Meanwhile, U.S. residents increased net purchases of long-term foreign securities by $29.6 billion.

Bonds Commentary

The 10-year U.S. Treasury yield held near 4.11% Friday after rising about 10 bps in two sessions, as the Fed signaled a less dovish stance than markets hoped. The central bank cut rates by 25 bps, projected two more reductions in 2025, and just one in 2026, with Powell stressing a cautious approach tied to labor market weakness rather than aggressive easing. Adding to the backdrop, jobless claims declined last week, offsetting the prior week’s spike, while the Fed kept quantitative tightening unchanged despite a sharp drop in its overnight reverse repo facility.

Futures Update

U.S. stock futures were steady near record highs early Friday, following the Federal Reserve’s first rate cut since December. Dow Jones futures edged up 0.1%, while both S&P 500 and Nasdaq 100 futures also rose 0.1%.

After initially trending higher early in the session, stocks continued to perform strongly throughout Thursday. The S&P 500 decreased by 31.59 points, or 0.48%, closing at 6,631.95. From a technical perspective, the index maintained support at key levels and upheld a steady upward trend, suggesting the possibility of further gains in the near term. Additionally, the 14-day Relative Strength Index (RSI) is rising, reinforcing a bullish outlook. Important support levels are near 6,520, with resistance expected around 6,720.