The market is in a wait-and-see mode, the three major U.S. stock indices opened lower collectively, the Nasdaq fell by 0.13%, oil prices rebounded by 1% during the day, spot gold fell below 4300, and the U.S. dollar strengthened

Author: Zhang Yaqi, Wall Street Journal

Global markets were generally in a wait-and-see mode on Wednesday. The stock market faced a dilemma with mixed movements, oil prices remained uncertain after the longest consecutive decline of the year, U.S. Treasury yields were nearly unchanged, while the dollar strengthened against the trend, supported by the Federal Reserve's hawkish stance, becoming the most prominent highlight of the day.

The three major U.S. stock indices opened lower collectively, with the Dow Jones down 0.18%, the S&P 500 down 0.11%, and the Nasdaq down 0.13%. Popular tech stocks had mixed performances, with Meta up 1.13% and SK Hynix down 1.57%; IONQ's stock price rose 13%, marking the largest intraday gain since July 30. Spot gold fell below the $4300 per ounce mark, trading at $4299.92 per ounce. The dollar rose for the fourth consecutive day, reaching its highest level since July.

The situation between the U.S. and Iran continued to dominate market sentiment. According to CCTV News and Xinhua News Agency, at the request of the U.S. side, representatives from the U.S. and Iran held a three-hour long discussion at the United Nations General Assembly and prepared for follow-up meetings. Trump stated in his speech at the UN General Assembly that he faced a significant choice—either to reach an agreement with Iran to end the war or to "quickly destroy Iran," while expressing his belief that both sides would reach an agreement after the midterm elections. Previously, he had indicated that U.S. officials had "very smooth" talks with Iranian envoys. Brent crude oil rose by 1.0% during the day, trading at $96.37 per barrel.

• The three major U.S. stock indices opened lower collectively, with the Dow Jones down 0.18%, the S&P 500 down 0.11%, and the Nasdaq down 0.13%. Popular tech stocks had mixed performances, with Meta up 1.13% and SK Hynix down 1.57%; IONQ's stock price rose 13%, marking the largest intraday gain since July 30.
• The dollar index rose for the fourth trading day in a row, up 0.1%.
• The yen fell 0.1% to 157.56 against the dollar.
• The yield on Australia's 10-year government bonds fell by 6 basis points to 5.24%.
• Brent crude oil rose by 1.0% during the day, trading at $96.37 per barrel.
• Spot gold fell below the $4300 per ounce mark, trading at $4299.92 per ounce.
• Bitcoin rose over 1% to about $87200.

Oil Prices Fluctuate, Stock Market in Wait-and-See Mode

Brent crude oil fluctuated widely around $99.50 per barrel, with both bulls and bears struggling to establish clear dominance. Nasdaq 100 index futures hovered near historical highs, while S&P 500 futures showed little movement, and benchmark indices in Europe and Asia also lacked upward momentum.

Emma Moriarty from CG Asset Management stated, "Market risk appetite, along with interest rate and inflation outlooks, will largely fluctuate with expectations and movements in oil prices. Brent has fallen, but overall price levels remain relatively high and may need to decline further."

From a technical perspective, the MSCI Global Index is rebounding from support levels, with significant room for market breadth expansion, presenting an overall positive signal.

In other asset classes, the Bloomberg Dollar Index rose for the fourth consecutive trading day, up 0.1%. Investors are closely watching the speech of Federal Reserve Governor Michael Barr, as another official had previously warned that inflationary pressures may persist. Gold fell 0.4% to about $4345 per ounce, while Bitcoin rose over 1% to about $87200.

Economic Data Diverges, Eurozone Surprises

Against the backdrop of a relatively light economic calendar this week, S&P Global released preliminary manufacturing and services Purchasing Managers' Index (PMI) for September on Wednesday. Both readings for the U.S. are expected to remain consistent with a robust growth trend.

The Eurozone, on the other hand, brought unexpected surprises. Boosted by better-than-expected improvements in the services sector, private sector activity in the Eurozone expanded at the fastest pace in over three years. The S&P Global Eurozone Composite PMI rose from 52 in August to 53.1, significantly above the neutral threshold of 50.