U.S. equities close at fresh peaks on narrow tech leadership while crypto liquidations surge and gold dips ahead of Fed minutes.
S&P 500 (SPY) — 779.09 (+0.55%) [Twelve Data] · Nasdaq 100 (QQQ) — 759.66 (+0.46%) [Twelve Data] · Dow Jones (DIA) — 514.56 (+0.48%) [Twelve Data] · Bitcoin (BTC) — 84,223 (−1.27%) [Binance US] · Ethereum (ETH) — 2,618 (−3.03%) [Binance US] · Gold (GLD) — 382.27 (+0.72%) [Twelve Data] · US Oil (USO) — 144.91 (+0.64%) [Twelve Data]
Nasdaq hits record as traders price out October rate increase; crude falls 2.3% as Middle East exports normalize; Bitcoin retreats from $87k test.
U.S. equity benchmarks extended their 2026 rally on Tuesday, with the S&P 500 closing at a fresh record of 779.09 (up 0.55%) and the Nasdaq Composite also hitting a new peak, according to the Wall Street Journal. The S&P 500 logged its 28th record close of the year and touched an intraday high of 7844.52, its first end-of-day record since August. The Dow Jones Industrial Average rose 0.48% to 514.56, while the Nasdaq 100 added 0.46% to 759.66.
The rally, however, remained narrowly concentrated in large-cap technology stocks, with the Journal noting that the AI trade is "propelling stocks to new heights—and it is dragging the rest of the market along for the ride." Sector breadth was thin, and the advance came despite the Federal Reserve's decision earlier this year to raise rates for the first time in three years and a monthslong conflict that lifted oil prices to $100 per barrel. The Journal characterized the move as driven by momentum in a handful of mega-cap names rather than broad-based economic strength.
The 10-year U.S. Treasury yield eased slightly after a relentless rise in recent sessions, providing a modest tailwind for equities. Market participants are now focused on the release of minutes from the Federal Reserve's September meeting, due later on Wednesday, for clues on whether policymakers remain inclined to raise rates further. The narrow leadership and elevated valuations in the technology sector have raised questions about the sustainability of the rally, particularly if economic data or Fed commentary disappoint.
Gold gained 0.72% to close at $382.27 in ETF terms, but spot prices slipped in Asian trading hours on Wednesday as the U.S. dollar strengthened and investors awaited Federal Reserve minutes for guidance on the rate path. According to Reuters, spot gold fell 0.6% to $4,138.34 per ounce by 0451 GMT, while U.S. gold futures dropped 0.5% to $4,164.70. CNBC reported spot gold easing 0.3% to $4,150.23 per ounce by 0145 GMT, with the variance reflecting intraday volatility.
The pullback came as the dollar gained ground, making dollar-denominated gold less attractive to holders of other currencies. Market participants are looking to the minutes of the latest Federal Open Market Committee meeting for clarity on whether policymakers see further rate hikes ahead. CNBC noted that "minutes will clarify" the Fed's stance, with elevated rates typically pressuring non-yielding assets like gold. Despite the near-term softness, gold remains well-supported by persistent geopolitical tensions and concerns over supply chain pressures, which the New York Fed reported rose last month relative to August, according to Reuters.
Silver followed gold higher in the prior session, adding 0.58% to $55.45, while natural gas surged 1.80% to $10.74 on supply tightness. Base metals were mixed, with Macquarie noting in a Wall Street Journal roundup that Nickel Industries' Huayue Nickel Cobalt HPAL project in Indonesia continues to produce above nameplate capacity, suggesting robust supply in the nickel market.
U.S. oil (USO) rose 0.64% to $144.91, with Brent crude futures holding above the psychologically important $100-per-barrel level despite a significant uptick in Middle Eastern crude exports. According to the Wall Street Journal, Commonwealth Bank of Australia's Vivek Dhar noted that ship tracking data show Middle Eastern oil exports have climbed to levels close to pre-war levels, yet Brent remains elevated.
The resilience of oil prices in the face of rising supply suggests that geopolitical risk premium and concerns over potential supply disruptions continue to underpin the market. Lower Chinese imports and non-OPEC+ production growth have not been sufficient to push prices materially lower, indicating that traders remain wary of sudden shocks. The Journal characterized the market as "little changed" in Asian trade, reflecting a cautious equilibrium between supply normalization and lingering geopolitical uncertainty.
Natural gas outperformed, gaining 1.80% to $10.74, driven by tightness in U.S. supply and elevated demand as winter approaches. The divergence between oil's modest gains and natural gas's sharper move highlights differing supply-demand dynamics across energy markets.
Bitcoin fell 1.27% to $84,223, briefly sliding below $84,000 and triggering a wave of leveraged long liquidations across crypto futures markets. According to The Block, crypto liquidations totaled $555.6 million over the past 24 hours, with $487.2 million in long positions wiped out, citing CoinGlass data. The move marked Bitcoin's third rejection at the $87,000 resistance level since late September, according to CoinMarketCap analysis, and coincided with a shift to net outflows from U.S. spot Bitcoin ETFs.
CoinMarketCap noted that Bitcoin is down 1.79% to $83,927.62 in 24-hour terms, moving in lockstep with a 1.99% drop in the total crypto market cap. The pullback appears driven by technical rejection and positioning unwinds rather than a single fundamental catalyst. CoinDesk reported that Bitcoin is now down 32% from its record high of $126,000 set a year ago in October 2025, with the market transitioning from retail leverage-driven rallies to more institutionally driven ETF flows.
Ethereum underperformed, dropping 3.03% to $2,618, while other major altcoins also declined: Solana fell 0.80% to $118.94, BNB slid 1.37% to $768.55, and XRP lost 1.50% to $1.4732. The broader weakness in altcoins suggests risk-off sentiment across the crypto complex. CoinMarketCap analysis highlighted that if Bitcoin holds above the $83,300–$84,600 support zone, it could retest resistance, but a break below would open the door to further downside.
On the regulatory front, no major crypto-specific news emerged, though Canary Capital's amended spot PEPE ETF filing on October 2 continues to circulate in industry discussions. Cardano announced that token issuers on its network now have the power to freeze, seize, and restrict assets, according to CoinDesk, a move that has sparked debate over decentralization trade-offs in the pursuit of regulatory compliance.
Investor attention is firmly on the Federal Reserve, with minutes from the September FOMC meeting due for release on Wednesday. According to CNBC and Reuters, market participants are looking for clues on whether policymakers remain inclined to raise rates further after hiking for the first time in three years earlier this year. The 10-year U.S. Treasury yield eased slightly after a relentless rise, providing modest relief to risk assets, though the Wall Street Journal noted that elevated rates and persistent inflationary pressures remain central concerns.
The New York Fed reported that supply chain pressures rose last month relative to August, according to Reuters, a development that could contribute to rising inflation and support the case for additional rate hikes. The Financial Times noted that high energy prices and concerns over France's public finances are adding pressure to the euro, with the single currency weakening against the dollar. Global pension funds are reportedly cutting U.S. equities over concerns about AI concentration risk, according to the FT, a sign that institutional investors are growing wary of the narrow leadership in equity markets.
In Asia, Indian shares trimmed losses after a hawkish rate hike by the Reserve Bank of India, according to Reuters, reflecting a broader trend of central banks maintaining tight monetary policy to combat inflation. The macro backdrop remains one of elevated uncertainty, with investors balancing resilient equity markets against the risk of policy tightening, geopolitical tensions, and slowing global growth.
Wednesday's release of the Federal Reserve's September meeting minutes will be the key event, with markets looking for clarity on the rate path and the likelihood of further hikes. Any hawkish signals could pressure both equities and crypto, while a dovish tone may provide relief. In crypto, Bitcoin's ability to hold above the $83,300–$84,600 support zone will determine whether the recent liquidation wave marks a temporary flush or the start of a deeper correction. Oil traders will continue to monitor Middle Eastern export data and geopolitical developments for signs of supply disruption risk.
The Knightron Crypto editorial team — deep-research writers covering crypto, Web3, exchanges and markets across MENA, APAC and beyond.
US equities rally on cooler jobs data and fading near-term rate-hike expectations; major banks lift oil forecasts as Iran conflict persists.
Weaker-than-expected September payrolls dampened rate-hike expectations, lifting equities and risk assets while gold and oil retreated on macro repricing.
