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Monday saw a sharp rebound in Wall Street, with the Dow Jones rising 2.2%, the S&P 500 2.4%, and the Nasdaq 2.7%. Nvidia was a notable exception, falling 4% amid scrutiny surrounding CEO Jensen Huang.
Lower oil prices also supported sentiment, with WTI falling more than 5% and Brent more than 6%. The main focus now is the October CPI, expected to show headline inflation rising 0.3% and core CPI 0.2% on a monthly basis.
In early trading today, U.S. stock futures are mostly higher, with S&P 500 futures up 0.2% and Dow futures 0.4%, while Nasdaq futures were little changed.
In Asia, China’s trade data came in stronger than expected in October, with exports rising 35.2% year-on-year, above the 33.5% forecast, while imports surged 41.6%, significantly exceeding expectations and accelerating from September.
Asian markets also traded broadly higher, led by South Korea’s Kospi, which surged 4.2%, while Japan’s Nikkei 225 gained 2.9%.
Gold had another positive session yesterday, gaining more than 1.7% to $4,140 an ounce. This is despite the 165K increase in October payrolls and a decline in unemployment to 4.1% which strengthened the case for higher rates. However, lower oil prices and a broader risk-off environment in equities, particularly following the AI selloff, provided support for the precious metal by easing inflation concerns and pushing bond yields lower. Investors will also closely monitor developments around the U.S.-Iran peace talks for the next major catalyst.
