Gold holds near record as Tesla lifts S&P 500

Tesla rose 6% on Thursday, helping the S&P 500, Dow and Nasdaq close at record highs as investors priced in a 25bp Federal Reserve rate cut next week. Spot gold advanced to $3,652 per ounce near Tuesday’s record, while Brent crude slipped to $65.88 after the IEA forecast higher OPEC+ supply and rising Saudi exports to China. The dollar index steadied at 97.64 early Friday, sterling eased to $1.356, and the euro slipped to $1.172 as US jobless claims hit a four-year high.

Equities

The FTSE 100 closed up 0.8% on Thursday, its strongest finish in more than three weeks, helped by gains in industrial and banking stocks. Aerospace and defence shares were the day’s standouts, with BAE Systems rising 6.3% after investors welcomed steady demand in the sector. Rolls-Royce added 2.2%, while Babcock climbed 2.7%. Avon rose 7.9%, contributing to a 3.5% advance for the broader aerospace and defence segment.

Banks were also firmer, with HSBC up 1.5% and Barclays higher by 1.2%. GSK gained 1.9% as healthcare stocks rose modestly. Among consumer names, Burberry slipped 2.8% as personal goods stocks lost 1.7%. Energy shares eased alongside oil prices, with Shell down 0.4% after trimming its annual production forecast for the second time in four months.

Elsewhere in London, Compass Group rose 2.8% after Deutsche Bank upgraded its rating on the catering firm to “buy” from “hold”. Trainline jumped 12.2% after saying it expected annual adjusted core profit to come in at the top end of guidance. Playtech touched a record high during the session and closed 3.9% ahead after posting upbeat first-half results. M&G slipped 1.8% as its shares traded ex-dividend.

On Wall Street, the S&P 500 climbed 0.85% on Thursday to close at 6,587.47, while the Nasdaq rose 0.72% to 22,043.08. The Dow Jones Industrial Average advanced 1.36% to 46,108.00, with JPMorgan and Goldman Sachs both gaining more than 1%. Tesla rose 6% during the session, helping lift the major benchmarks to record highs.

Micron Technology jumped 7.5% to $150.55 after Citigroup raised its price target to $175, lifting the Philadelphia Semiconductor Index to an all-time high. Warner Bros Discovery surged 29% after reports of a potential majority cash bid from Paramount Skydance. Centene added 9% after reaffirming its annual profit forecast and highlighting Medicare quality ratings in line with expectations. Oracle fell 6.2% as it gave back part of a sharp rally from the previous session, while Delta Airlines shed 1.55% after reiterating its full-year outlook.

Forex & Commodities

The dollar index edged up to 97.64 but stayed on track for a second weekly fall after a surge in US jobless claims tempered the impact of firmer inflation data. The euro slipped to $1.172, while sterling traded lower at $1.356. Against the yen, the dollar strengthened to 147.5 after US and Japanese officials reaffirmed that exchange rates should remain market-driven. The offshore yuan eased to 7.117 per dollar. The Australian dollar held near a 10-month high at $0.666, while the kiwi traded slightly weaker at $0.5968.

Spot gold rose to $3,652 per ounce at 0609 GMT on Friday, building on a 1.8% gain so far this week and holding close to the record $3,674 reached on Tuesday. Silver climbed to $42.07, platinum to $1,394 and palladium to $1,200, with all three metals set to finish the week higher. Analysts said the prospect of at least three US interest rate cuts before the end of 2025 has kept bullion in demand.

Oil prices slipped again on Friday after heavy losses the previous session. Brent crude was last at $65.88 a barrel by 0419 GMT, while West Texas Intermediate stood at $61.86. Prices fell as the International Energy Agency projected stronger global supply this year, supported by higher OPEC+ output from October, including Saudi shipments to China climbing to 1.65 million barrels per day. US government data on Wednesday showed crude inventories up 3.9 million barrels at 424.6 million, while Russian export revenue eased in August.