Markets Rally on Microsoft & Meta Beats, But Yen Crumbles After BOJ

Hello traders, and welcome to Thursday’s session. While many European markets are closed today for Labor Day, the global financial stage is anything but quiet. From central bank updates to blockbuster earnings, we’ve already seen some powerful movements early in the session.

Central Bank Spotlight: Bank of Japan Holds Rates

The day kicked off with a monetary policy update from the Bank of Japan. As expected, the central bank kept interest rates unchanged. The outcome is that the Japanese Yen is the biggest loser on the currency board this morning—dropping sharply across major pairs and reflecting disappointment from investors.

Eyes on the U.S.: Key Data Ahead

With much of Europe offline, attention shifts across the Atlantic. Today, we await two critical U.S. economic reports:

• Unemployment Claims

• ISM Manufacturing PMI (expected at 48)

These will be the first meaningful data points of the day and could drive volatility, especially as traders reposition in response to Fed expectations and risk sentiment.

Earnings Bonanza: Tech Giants Report

Wednesday’s after-hours session brought a wave of strong earnings from major U.S. tech companies:

• Microsoft beat expectations and is now trading 7% higher in pre-market.

• Meta Platforms also exceeded estimates, gaining nearly 6% in early trade.

• Qualcomm, despite beating on EPS, is down 5%, indicating weaker forward guidance or a cautious outlook.

Looking ahead, the spotlight shifts to Apple and Amazon, both of which will report after today’s U.S. market close.

Indices: Rollercoaster Reversal with a Bullish Finish

Yesterday’s session saw sharp declines early in the day, only to be completely reversed by the U.S. open. Indices staged an impressive comeback, pushing into new mid-term highs. The tone now seems decidedly bullish, with momentum favoring further gains as tech leads the charge.

Commodities: Gold Breaks Down, Oil Slips

It’s not all sunshine on the commodity front. After days of indecision, gold broke below a pennant formation, confirming a bearish signal and hinting at continued downside in the medium term. Silver is also under pressure, struggling to maintain recent levels.

Meanwhile, oil prices continue their decline, sliding toward new long-term lows and extending the negative sentiment that has dominated the energy market in recent weeks.

Despite reduced European participation today, market catalysts remain plentiful—especially in the U.S. equity and currency markets. Keep an eye on upcoming economic releases and tech sector price action, as they may define the tone heading into Friday.

Source: https://www.axiory.com/analytics/market-news/markets-rally-on-microsoft-meta-beats-but-yen-crum