Summary of the Day: Gold and Indices Retreat from Historical Highs, Dollar at 2-Month High
- Indices on Wall Street are experiencing a correction as the euphoria surrounding gold hits a ceiling. Market stress is also generated by the lack of publication of further data regarding unemployment benefit claims, which are crucial from the Fed's decision-making perspective. The Russell 2000 small-cap index (US2000: -0.95%) is losing the most, followed by Nasdaq (US100: -0.7%), DJIA (US30: -0.65%), and S&P 500 (US500: -0.6%).
- According to Fed Governor Michael Barr, the central bank should approach rate cuts cautiously due to the persistent risk of inflation. Barr added that price pressure in services is somewhat dependent on high valuations on Wall Street.
- Despite a moderately good start to the session, indices in Europe have moved to the defensive (EU50: -0.6%). The Italian FTSE MIB (ITA40: -1.7%) lost the most, while the British FTSE 100 (UK100: -0.5%), Spanish IBX35 (SPA35: -0.5%), and French CAC40 (FRA40: -0.25%) saw milder declines. DE40 is flat.
- The precious metals market has had a very volatile session. Midday, silver reached a new all-time high of $50 per ounce. However, by the end of the day, sentiment clearly worsened, and contract prices are experiencing a broad correction: gold is down 2% to $3960 per ounce, platinum 2.45%, and palladium 2.8%. Silver is currently flat at $48.90 per ounce.
- In the FX market, we observe a continuation of bullish sentiment on the dollar (USDIDX: +0.6%), which has risen to a 2-month high. Nordic currencies are the weakest among the G10 currencies today (USDNOK: +1.1%, USDSEK: +1.2%), additionally losing amid oil declines. The Chinese yuan is one of the few strengthening against the dollar (USDCNH: -0.2%). EURUSD is down 0.55% to 1.156.
- The weakening appetite for risk does not favor the cryptocurrency market, with declines observed in almost all tokens. Bitcoin is down 2.3% to around $120,600, Ethereum is sliding 4.6% to around $4,320, and smaller tokens are under even greater pressure.
- Ferrari, a leader in the supercar market and a symbol of Italian craftsmanship, is down over 15% today. This is the aftermath of exceptionally disappointing results and even worse growth prospects. This is the second such large decline this year.
- Delta Airlines, one of the main American airlines, published a very good semi-annual report. The company exceeded market expectations and demonstrated a high operating margin. The stock is up over 4%.
- China, as part of a major escalation of the trade war, has introduced a series of new restrictions on rare earth metals. This supports the valuations of mining companies but may negatively impact microchip, electronics, and armament manufacturers.
- The prospect of ending or significantly de-escalating the current conflict in the Middle East is putting pressure on oil prices. Brent and WTI contracts are down about 1.5%.
Dollar at its strongest in two months 💲📈 Lack of U.S. data is suppressing the bearish trend
Stock of the Week - Super Micro Computer (09.10.2025)
US OPEN: Pepsico and Delta reporting, S&P500 hanging on the top ↔️
Ferrari disappoints investors as shares drop 16%
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
