US Stocks Surge, Oil Prices Jump Amid Geopolitical Tensions
The U.S. stock market saw gains across the board on Friday, with the Dow Jones Industrial Average rising 0.98%, the Nasdaq Composite Index gaining 0.96%, and the S&P 500 Index advancing 0.86%. Large-cap tech stocks performed well, led by SpaceX's and Amazon's surges of about 2%.
However, a more significant increase was seen in international crude oil prices, with WTI crude (USOIL) rising 2.6% to $100.94 per barrel and Brent crude (UKOIL) gaining about 3% to $105.68 per barrel. In contrast, spot gold (XAUUSD) fell 0.17% to $4,340.490 per ounce, while spot silver (XAGUSD) dropped 0.41% to $64.128 per ounce.
Cryptocurrencies generally declined, with Bitcoin (BTC) falling 0.5% to $76,997.5; Ethereum (ETH) dropping 2.2% to trade at $2,484.05; Ripple (XRP) falling 1.53% to trade at $1.34; and Solana (SOL) declining 2% to $99.65.
The U.S. August core CPI rose 0.3% month-on-month, beating expectations, while the probability of a Fed rate hike this week rose to nearly 90%. Data from the U.S. Bureau of Labor Statistics showed that August CPI rose 3.4% year-on-year, in line with expectations, while core CPI rose 2.4% year-on-year, hitting a five-and-a-half-year low.
Following the release of the data, interest rate swaps indicated that traders priced in an 89% chance of a 25-basis-point Fed rate hike in September, up from 69% before the release. White House National Economic Council Director Kevin Hassett stated that both Trump and he believe there is no reason to raise interest rates.
Additionally, Oman announced the postponement of a regional meeting originally scheduled for the 14th due to difficulties in reaching consensus, while Iran claimed it has no intention of going to war with Saudi Arabia. The situation in Yemen escalated rapidly as Houthi militants and Saudi Arabia launched mutual attacks, causing strategic geopolitical risks in the Red Sea to surge.
OpenAI CEO Sam Altman stated that OpenAI will not go public this year, adding that if AI threatens human survival, he would rather abort the IPO. Anthropic plans to push forward with a massive IPO in the autumn despite growing calls for industry regulation and ongoing market volatility.