Tech Gains, Commodities Slide, Job Cuts Rise, and Fed Outlook in Focus

Source: Krish Capital Pty Ltd

Index Update

U.S. stocks were mixed as the S&P 500 and Nasdaq rose on strong tech gains, led by Alphabet and Apple, while the Dow edged lower. Despite the rally, worries over weakening labor demand persisted, keeping attention on upcoming payrolls and jobless claims data.

Market Movers

On Wednesday, the top gainers were Solidion Technology, Inc. (+113.72%), followed by BT Brands, Inc. (+63.78%). On the contrary Solowin Holdings. (-37.91%), and MSP Recovery, Inc. (-24.49%) declined the most the same day.

Commodities Update

Oil prices fell as WTI dropped toward $63 and Brent slipped below $67 per barrel, extending sharp declines on worries that OPEC+ could boost supply at its upcoming meeting. The group may start unwinding 1.65 million bpd of output cuts to regain market share, though past capacity limits have hindered actual gains. Bearish sentiment was reinforced by U.S. crude stockpiles rising unexpectedly and weak economic data pointing to softer fuel demand.

Gold eased to around $3,530 per ounce after a record rally, as investors awaited U.S. labor market data for policy signals. Despite the pullback, prices remain near highs, supported by safe-haven demand, expectations of Fed rate cuts, and broader uncertainties including U.S. trade policy and debt concerns. Analysts see momentum persisting, with gold already up about 40% this year.

Macro Updates

U.S. Job Cuts Surge to Highest August Level Since 2020

U.S. employers announced nearly 86,000 job cuts in August 2025, up sharply from July and marking the highest August figure since 2020. Layoffs were concentrated in pharmaceuticals, financial services, and technology. Year-to-date cuts have reached over 892,000—the highest since 2020—driven by economic pressures, market conditions, and rising bankruptcies and closures.

Trump Administration Seeks Supreme Court Review on Tariff Authority

The Trump administration has asked the Supreme Court to review a ruling that struck down its use of the 1977 IEEPA law to impose tariffs, arguing the decision threatens a key pillar of its trade and foreign policy. Lower courts found Trump exceeded his authority, ruling that IEEPA does not grant broad tariff powers. The administration is pushing for a fast-track decision, with implications for ongoing lawsuits and its wider economic agenda.

Bonds Commentary

The U.S. 10-year Treasury yield eased to 4.2%, its lowest in a month, as weaker labor data strengthened expectations of a Fed rate cut this month. Markets are now focused on upcoming jobs figures for further policy signals, following recent pressure on global bonds from concerns over government finances.

Futures Update

S&P 500 and Nasdaq futures inched higher as global bond markets steadied following recent volatility, while Dow futures held flat. Comments from Federal Reserve officials eased concerns and strengthened expectations of another rate cut at the upcoming meeting. In Japan, a weak but sufficient auction of longer-term government bonds helped calm markets after yields on 30-year bonds hit record highs.

Stocks initially retreated after an early rally on Wednesday but regained momentum late in the session, closing mostly higher. The S&P 500 rose by 32.74 points, or 0.51%, finishing the day at 6,448.27. From a technical standpoint, the index found support at important levels and gradually moved higher, hinting at the potential for further gains in the near term. Additionally, the 14-day RSI is approaching the midpoint, suggesting the possibility of an upward move. Key support levels are around 6,366, with resistance expected near 6,510.