US Equities Advance Midday; Gold Up 2.28%, WTI Crude Rises 1.20%

Lead US equities are trading higher at midday, with the S&P 500 up 0.41% and Nasdaq 100 gaining 0.80%. Gold prices are up 2.28%, and WTI crude has risen 1.20%. Geopolitical tensions persist with reports of a Russia sanctions bill in the Senate and Iran linking Hormuz passage to sanctions relief. Session narrative US equities are broadly higher at midday, extending earlier gains. The S&P 500 is up 0.41%, and the Nasdaq 100 has climbed 0.80%. The Dow is also in positive territory, up 0.13%. This follows a morning rally sparked by a surprisingly weak July jobs report, which saw an unexpected decline of 23,000 nonfarm payrolls. This data fueled hopes that the Federal Reserve might keep interest rates on hold rather than resume tightening next month. However, some indexes have pared gains from their session highs. The VIX, a measure of market volatility, is down 1.32%. Cross-asset check In commodities, gold is a strong performer, up 2.28%, trading at 4397.7. Silver is also up 3.09%. WTI crude oil has risen 1.20% to 78.22, and Brent crude is up 1.22%. Natural gas is higher by 1.21%, while copper is down 1.73%. In the fixed income market, the US 10-year Treasury yield is down 0.39% at 4.65%, and long-duration Treasuries are up 0.09%. The US Dollar Index is lower by 0.43% at 99.5. EUR/USD is up 0.32%, and GBP/USD is up 0.37%. USD/JPY is down 0.62%. The unexpected decline in July nonfarm payrolls, which missed expectations for an 86,000 increase, has been a significant driver for market sentiment. The details of the jobs report showed that government payrolls accounted for most of the weakness, falling by 53,000. Private-sector hiring remained broadly resilient. This weaker-than-expected jobs data has led to increased speculation that the Federal Reserve may pause its tightening cycle. Goldman Sachs' chief economist noted that upcoming inflation data will be more important for the Fed than employment figures, with expectations for continued softening inflation. Themes & continuing stories Geopolitical tensions remain a key theme. A Russia sanctions bill is reportedly on track to pass the Senate, with voting ongoing. Separately, Iran has linked the passage of the Strait of Hormuz to sanctions relief, and there are reports of explosions in Yemen following a missile attack. The US is also appealing to the Supreme Court, and Iraq has vowed not to allow its territory to be used for attacks targeting other countries. These developments contribute to ongoing market uncertainty. What’s ahead Looking ahead, Credit Agricole highlights that next week, inflation will take center stage ahead of the September FOMC meeting. The market will be closely watching for further data points that could influence the Federal Reserve's monetary policy decisions.