Daily Summary: Nasdaq, Gold, and Bitcoin Benefit from Lower Bond Yields (03.09.2026)
Market Overview
The US stock market, particularly the Nasdaq, experienced a positive shift as US Treasury yields declined significantly. The 2-year Treasury yields fell by 0.9%, while the 10-year and 30-year yields saw smaller decreases of 0.6% and 0.5%, respectively. This decline in yields has contributed to a more favorable environment for equities, gold, and Bitcoin.
Monetary Policy Insights
Key focus today was on the speech by FOMC member Christopher Waller, who adopted a dovish tone compared to Federal Reserve Chair Kevin Warsh's previous remarks. Waller highlighted ongoing disinflation and indicated that if the upcoming Consumer Price Index (CPI) reading does not show negative surprises, he would likely support keeping interest rates unchanged in the next Federal Reserve meeting. This led to a decrease in the market's expectation of a rate hike in September, dropping to around 50% from over 60% the previous day.
Macroeconomic Data
Weak ADP employment data previewed the upcoming Non-Farm Payroll (NFP) report, showing a decline in new jobs for the third consecutive month, with the manufacturing sector losing 17,000 jobs. In contrast, the education and healthcare sectors added 45,000 jobs, indicating a mixed labor market.
Currency Market Dynamics
The dollar weakened against all G10 currencies, influenced by the dovish sentiment and the strengthening of the Japanese yen. The Bank of Japan's policymakers have adopted a more hawkish stance, suggesting the need for aggressive interest rate hikes to combat inflation.
Equity Market Performance
Investor sentiment improved across various sectors, with technology, communication, and financial companies performing well. Notably, all companies in the traditional "Magnificent Seven" (Mag7) saw gains, with Tesla leading the charge at +7.2% following the announcement of its new Cybercab model, a fully autonomous taxi. Other significant gainers included Meta (+3.7%), Microsoft (+2.9%), and Nvidia (+2.5%).