Most European bond markets were closed for the May Day holiday. British 10-year bond yields fell, and U.S. Treasury yields dropped to 4.15%.Ignacio T
Quick overview
- Wall Street remained open on Labor Day and ended the day with gains, driven by strong tech earnings from Microsoft and Meta.
- Despite a contraction in the U.S. economy, the Nasdaq rose 1.5%, the S&P 500 gained 0.6%, and the Dow Jones edged up 0.2%.
- Global markets were sluggish, with Japan’s Nikkei rising while Europe’s FTSE stalled, leading to a dip in the MSCI global equity index.
- Gold prices dropped to a two-week low as traders took profits, while U.S. Treasury yields fell and analysts predict four rate cuts for the year.
While markets worldwide were mostly closed for Labor Day, Wall Street remained open and ended the day in the green.
Global markets were sluggish following the contraction of the U.S. economy, but Wall Street saw gains thanks to strong tech earnings reports from Microsoft and Meta. Meanwhile, the Bank of Japan’s lowered growth forecasts, attributed to U.S. trade tariffs, led to a drop in the yen.
In New York, the Nasdaq rose 1.5%, the S&P 500 gained 0.6%, and the Dow Jones edged up 0.2%. Despite a U.S. GDP contraction in Q1, Wall Street ended higher, bolstered by solid tech results.
SPX
In Asia, Japan’s Nikkei jumped, but Europe’s FTSE stalled, causing the MSCI global equity index to dip into the red.
International Markets
Gold, which had soared as a safe-haven asset this year, dropped to a two-week low as traders locked in some profits amid signs of easing in the global trade war.
Meanwhile, most European bond markets were closed for the May Day holiday. British 10-year bond yields fell, and U.S. Treasury yields dropped back to 4.15%. Analysts are now forecasting four U.S. rate cuts for the remainder of the year.
Crude oil prices stabilized at $61 per barrel after a drop on Wednesday, fueled by U.S. GDP data and indications that Saudi Arabia, the world’s largest oil exporter, plans to increase production this year.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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