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.

GBP/USD bounces off four-day lows, still below 1.3500

GBP/USD sticks to the bearish tone on Thursday, coming down to the 1.3480 region in the latter part of the NA session. In the meantime, Cable’s weakness comes as investors continue to assess mixed UK data, poor US results, and the persistent uncertainty surrounding the US-Iran conflict.

EUR/USD clings to gains near 1.1530

EUR/USD advances marginally, girating around the low-1.1500s on Thursday. Persistent uncertainty in the Middle East fuels risk aversion, limiting the US Dollar’s downside potential. Earlier in the day, both US Producer Prices and weekly Claims missed market consensus, adding to the buck’s soft tone.

Gold loses the grip, recedes toward $4,350

Gold extends its intraday pullback on Thursday, retesting the $4,350 zone per troy ounce, or three-day troughs. Meanwhile, the yellow metal continues to monitor developments from the Middle East as well as bets surrounding the potential Fed’s rate path.

Crypto Today: Bitcoin, Ethereum, XRP remain sluggish amid mixed ETF flows

The cryptocurrency market continues to trade sideways on Thursday, with Bitcoin struggling to reclaim the $64,000 level. Ethereum is attempting to build momentum near the key $1,900 resistance, while Ripple maintains support above $1.00, yet upward movement remains limited.

Week ahead – Summer lull could be tested by geopolitics and central bank expectations

US dollar stabilizes as September Fed hike bets remain subdued. Market volatility stays low, but thin liquidity could amplify movements. Key UK data could challenge pound strength; euro craves bullish catalysts.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.