S&P 500 hits new high on fresh AI enthusiasm

Chris Beauchamp IG

The AI boom is back on, as tech lifts the S&P 500 to a new high, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

AI stocks lead the way higher

The resurgence of AI names continues, pushing the S&P 500 to a new record high. A soft PPI reading adds to the impression of restrained inflation seen in yesterday’s CPI data, allowing investors to head back to the high-flying, but expensive, growth stocks. While the market goes through periodic worries about inflation, but the strong earnings on offer means that the temptation is irresistible. Further upside seems likely, barring a sudden resumption of Middle East hostilities.

Oil prices head lower

OPEC’s cut to its demand forecast helps to ease worries that the world will run out of oil and run straight into an energy crisis. With demand lower, the concerns about flows out of Hormuz diminish, and indications of higher than expected volumes emerging from that region add to the potential for a reversal in recent gains in the oil price.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold clings to gains just below $4,200

Gold fades Monday’s small pullback and picks up renewed pace, briefly flirting with the key $4,200 mark per troy ounce. The precious metal’s recovery comes in line with the fresh downward trend in the Greenback in combination with shrinking US Treasury yields across the board and easing tensions on the geopolitical front.

Bitcoin rebounds despite cautious sentiment

Bitcoin rebounds over 2%, trading above $83,500 on Tuesday, recovering the previous day’s losses. Persistent geopolitical tensions and mixed signals continue to weigh on risk appetite, keeping investors cautious despite BTC’s recovery.

US – Midterm update: Democratic lead holds three weeks before election

With three weeks until the US midterm election on 3 November, prediction markets are more or less unchanged. Polymarket continues to put the probability of a Democratic sweep at 60-65%. The House is seen as a fairly safe Democratic win, with a probability of around 90%.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?