Andrea Innocenti Major stock prices closed in positive territory in both the United States and Europe. In New York, the S&P 500 index surpassed a new all-time high, while in Milan, the FTSE MIB gained nearly one percentage point, supported by lower volatility in the bond markets.
At the same time, energy prices continued to fall: Brent crude dropped more than 3%, WTI is around $87 a barrel, and natural gas in Amsterdam stood at around €73 per megawatt-hour.
These factors have fueled a more pronounced appetite for risk, favoring both technology stocks and traditionally defensive sectors.
Wall Street pushes the chips: record for the S&P 500
The S&P 500 reached 7.824,51 points, up 0,65% thanks to strong momentum from semiconductor manufacturers. Nvidia rose 1,83%, Broadcom 1,03%, and AMD 2,63%.
The Nasdaq hit 27.645,10, up 0,61%, while the Dow Jones closed at 51.509,98, up 0,47%. This momentum was fueled by a decline in 10- and 30-year Treasury yields, which are lower than their 2002 highs.
Reasons for the tech rally
The market reacted to lower inflation and weaker-than-expected US jobs data, reducing the likelihood of another rate hike by the Federal Reserve . The probability of keeping rates unchanged in October is now around 80,6%, according to the CME's FedWatch model. Meanwhile, oil prices fell thanks to increased flows from the Middle East and the use of strategic reserves by G7 countries, contributing to an improvement in overall sentiment.
European stock markets rise, with banks and media leading the way, while energy slows.
In Europe, the day was positive for the third consecutive day. Milan closed up 0,87% at 51.261 points, Madrid up 0,66%, Paris up 0,40%, London up 0,42%, and Frankfurt up 0,77%. The strongest performers were in the media, healthcare, and banking sectors: Inwit rose 3,5%, MPS up 2,34%, and Nexi up 3,4%. Conversely, shares of TIM, Eni, Saipem, Tenaris, Fincantieri, and Leonardo fell more than 2%, reflecting the weakness of the telecommunications and energy sectors.
BTP-Bund spread and its impact on sovereign risk
The spread between the 10-year Italian BTP and the German Bund narrowed to 104 basis points, with the BTP yield at 4,48%. The 13-basis-point reduction in rates for Italy, France, and Greece signaled a marked easing of tensions in the countries most exposed to debt risk. The euro gained ground against the dollar, settling at 1,127, a sign of increased confidence in the eurozone.
Falling oil prices and their impact on the markets
WTI fell 2,66% to $87,05 a barrel, while Brent crude fell 3,06% to $97,25. This decline supported the rise in non-energy stocks, as investors shifted capital to sectors perceived as more stable. Renewable energy showed signs of recovery, but lower oil prices remain the dominant factor in the current market dynamics.