Sunrise Market Commentary

Wall Street and rates markets were the main focus. The Nasdaq gained more than 1% and the Dow Jones closed at another record high, while Treasury yields were little changed to slightly lower on the short end. The U.S. services ISM stayed firm at 54, with new orders at 55.1 and employment back above 50, reinforcing the view that U.S. growth momentum is holding up. Fed commentary suggested inflation risks have overtaken labor-market concerns, keeping markets priced for a full rate hike by year-end. In Europe, ECB officials remained cautious on inflation and energy costs, supporting expectations for further bear-steepening in German yields. The piece also highlighted rising Japanese long-dated yields, upcoming U.S. Treasury refinancing auctions, and relatively steady FX trading. For the S&P 500, the backdrop is mildly supportive: stronger growth and resilient risk appetite help equities, but firmer policy expectations and yield pressure may cap upside.