Equities Higher; Dow Up 0.89%, S&P 500 Up 0.38%; VIX Down 5.31%; Gold Up 2.25%

Lead US equities closed higher today, with the Dow ETF up 0.89% and the S&P 500 ETF up 0.38%. The VIX fell 5.31%. Gold futures jumped 2.25%. Session narrative US equities ended the day in positive territory, recovering from earlier declines. The Dow ETF (DIA) showed the strongest performance, rising 0.89%, while the S&P 500 ETF (SPY) gained 0.38%, and the Nasdaq 100 ETF (QQQ) increased by 0.29%. The Russell 2000 ETF (IWM) also posted a solid gain of 0.76%. The market's fear gauge, the VIX, decreased by 5.31%. Cross-asset check In the commodities complex, Gold futures (GC) surged 2.25%, marking a significant move. Silver futures (SI=F) followed suit with a 1.81% increase, and Copper (HG=F) was up 1.73%. Energy markets saw WTI crude (CL) decline slightly by 0.20%, while Brent crude (BZ=F) edged up 0.17%. Natural gas (NG=F) also saw a gain of 1.01%. In the rates market, the US 10-year yield (TNX) rose 0.89%, pushing long-duration Treasuries (TLT) down by 0.36%. The US Dollar Index (DXY) was marginally lower by 0.07%. The geopolitical landscape saw Iran and Iraq sign a comprehensive security pact, and Omani and Iranian foreign ministers discuss conditions for resuming navigation talks for the Strait of Hormuz. On the regulatory front, Fannie Mae saw the departure of at least 10 senior executives, and Tesla received clearance for up to 5,000 autonomous vehicles in Nevada. Apple announced job cuts within its Siri and Vision Pro teams. In corporate news, Broadcom's debt deal is expected to exceed $70 billion, and AI cloud firm Nscale is reportedly seeking up to $3 billion in a US IPO. The US Treasury announced it would at least double its buybacks of 10- to 30-year debt after 30-year yields hit 5.27%, which briefly eased long-end rates. Bitcoin rallied above $77,000 as US equities steadied, and S&P Global’s flash composite PMI jumped to 56.0 in August from 54.5. The Baker Hughes US total rig count printed at 588, down from a prior reading of 593. A congressional document indicated the US intends to pay $725 million toward its UN debt. The DAX Index closed 0.59% higher, led by Adidas, BMW, and Hochtief. Walmart shares fell after its second-quarter results and analyst target cuts. The US Department of Justice and TikTok settled a children’s privacy lawsuit for $400 million. The IRGC commander-in-chief stated Iran must rapidly expand its offensive and defensive capabilities. A spokesperson for the Yemeni Armed Forces announced a statement on a “Roghom” drone strike targeting Saudi-backed mercenaries. Themes & continuing stories Geopolitical tensions remain a key theme, with the Iran-Iraq security pact and ongoing discussions regarding the Strait of Hormuz. Commodity strength, particularly in precious metals, is another notable trend. Regulatory developments, including executive departures at Fannie Mae and Tesla's autonomous vehicle clearance, continue to shape market sentiment. What’s ahead Looking ahead, Nvidia is scheduled to report its fiscal second-quarter results next Wednesday after the market close. Several key retailers, including URBN, GAP, and BURL, are due to report earnings next week. Investors are currently favoring large-cap stocks and short-term bonds, with Nvidia's upcoming earnings seen as a critical test for the growth sector.