US stock indices continue their bullish ascent on trade optimism and AI focus despite mixed earnings. Asia Pacific markets rally. The US dollar weakens while Gold pulls back.
Risk-on in equities, US dollar extends losses led by JPY, Gold pulls back towards key support
In today’s Asia session, the S&P 500 and Nasdaq 100 e-mini futures have continued to advance by an intraday gain of 0.1% and 0.3%, respectively, from yesterday’s US session's upbeat performances despite mixed Q2 earnings results from two mega-caps, Tesla and Alphabet, reinforced by US President Trump’s slew of executive orders to strengthen the US’s artificial intelligence (AI) capabilities and trade deal optimism with the European Union.
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In the after-hours of Wednesday’s US session, the share price of Tesla plummeted by -4.4% as the Q2 earnings of Tesla missed estimates (actual: $0.40 EPS, consensus: $0.48 EPS) coupled with a deadbeat growth assessment from Elon Musk due to the pending loss of electric vehicle incentives in the US and the lengthy process of rolling out driverless vehicles.
In contrast, the share price of Alphabet, parent company of Google, rose by 1.7% in the after-hours trading session, driven by its Q2 earnings beat (actual: $2.31 EPS, consensus: $2.16 EPS) due to robust demand for artificial intelligence products boosting quarterly sales.
The S&P 500 (+0.8%) ended Wednesday’s US session with a fresh all-time high, and the technology-heavy Nasdaq 100 advanced by 0.4% led by Nvidia (+2.3%). The Dow Jones Industrial Average outperformed with a gain of 1.1% to close at 45,010, and it is now just a whisker away from its current all-time high of 45,074 printed in early December 2024 (ex-post US presidential election). Overall, the short-term to medium-term bullish uptrend phases remain intact for the major US stock indices.
A positive follow-through has been seen in the Asia Pacific stock markets today, basking in the limelight of trade deal optimism before the extended 1 August deadline, as prior roadblocks between US-EU trade negotiations are likely to be thawed and latest media reports highlighted that both sides are progressing toward an agreement that would set a 15% tariff for most EU imports.
Japan’s Nikkei 225 continued its steep, impulsive up move in place since Tuesday, 22 July, as it advanced by 1.7% to hit an intraday level of 41,870, and fast approaching its current all-time high of 42,427 printed on 11 July 2024. Hong Kong’s Hang Seng Index added an intraday gain of 0.4%, on track for a fifth consecutive session of positive daily performance.
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In addition, Singapore’s Straits Times Index (STI) has refused to stage a minor pull-back after a magnificent rally of 11% from its 23 June 2025 low. The STI advanced by 0.8% intraday and is on track to record its 14th consecutive session of a new fresh record high.
In today’s Asia session, the US dollar has continued to weaken further, and this time round, the safe haven Japanese yen has joined the bandwagon. The JPY staged an intraday gain of 0.4%, outperformed among the major currencies against the greenback, followed by the risk-sensitive AUD (+0.3%).
Gold (XAU/USD) has continued to pull back from yesterday’s high as short-term traders are likely adjusting their bullish positioning considering a more positive trade negotiation environment between the US and its trading partners. The yellow metal shed 1.3% yesterday after three consecutive sessions of bullish run. In today’s Asian session, Gold (XAU/USD) slid further by -0.3% but it is fast approaching a key short-term support at US$3,260, where a potential bullish reversal may materialise.
Our YouTube video above contains the latest intraday technical analysis on the latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil.
