S&P 500: Record streak tests sustainability – Deutsche Bank

FXStreet Insights Team FXStreet

Deutsche Bank analysts highlight that the S&P 500 has just managed a ninth consecutive daily gain, taking it to fresh record highs, even with rising Oil prices. The index is close to matching or surpassing historic streaks on daily, weekly and monthly horizons. They also note that past episodes of similarly strong performance have not always been sustainable.

Index nears historic winning run

"Despite the rise in oil, the S&P 500 (+0.13%) just about posted a 9th consecutive advance yesterday, taking the index to a fresh record once again."

"For reference, we’re getting into historic territory, as it’s the longest run in the last year, and a 10th gain today would be the longest daily run since 1995."

"Moreover, the index is on the verge of several records, as it’s currently on track for a 10th consecutive weekly gain, which would be the longest run since 1985 if it manages it."

"On a monthly basis too, Henry pointed out yesterday, that there’s only been 5 times since WWII when the index was up more than +16% in two calendar months, as happened in April and May."

"So there’s been a stellar performance recently, but these runs haven’t always proved sustainable in the past."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold bulls seem hesitant below $4,500 amid modest USD bounce ahead of US NFP

Gold remains on the defensive below the $4,500 mark through the Asian session, snapping a two-day winning streak amid a modest US Dollar uptick. The commodity, however, remains close to the weekly high, which it touched the previous day, as traders keenly await the release of the closely watched US monthly employment details. The popularly known US Nonfarm Payrolls (NFP) report will provide more cues about the Fed's policy path amid receding bets of a September rate hike.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

US August Nonfarm Payrolls expected to rebound to 56K after July slump

The US Bureau of Labor Statistics (BLS) is set to release the Nonfarm Payrolls (NFP) data for August. Investors expect NFP to rise by 56K in August following July’s unexpected print of -23K.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.