There is calm in the market after last week's storm. The VIX, which measures market fear, hit a four-year high before calming down, although it is still above the 200-day average. Experts think the recent crash was more about traders unwinding risky bets than real economic worries, with legendary investor Warren Buffet even selling half of his Apple stock. Still, investors are on edge about upcoming economic reports, the U.S. election, and Middle East development. The market nearly hit correction territory, which often leads to an actual correction pretty soon after.

EQUITY

Major U.S. stock indices started the week mixed, with the S&P 500 staying breakeven while Nasdaq closed higher on recovering tech stocks, especially chip companies, making a comeback. Nvidia is up about 4%, beating other big tech names. The fact that Super Micro Computer, which uses Nvidia's chips, is doing even better, suggests that investors still have faith in AI stocks. Nvidia's earnings report at the end of August remains the main spotlight, which might make or break the market.

GOLD

Gold prices are hovering near record highs, with spot gold recently trading around $2,462 per ounce, with Monday's rally exhausted at $2,477. Analysts suggest that a breakout above the current levels could push prices towards $2,550 per ounce, with upcoming U.S. inflation data expected to push prices higher. There is also a geopolitical factor where threats from Iran and Hezbollah linger with Israel on high alert.

OIL
Oil prices were muted as market focus shifted back to demand concerns after an already strong 5-day streak that pushed the price $6 higher. The gain can be attributed to geopolitical tensions in the Middle East that are escalating, with the U.S. preparing for potential attacks by Iran or its proxies. However, OPEC's reduced demand growth forecast for 2024 and the extension of OPEC+ output cuts only until September with a gradual phase-out starting in October continue to impact market sentiment.

CURRENCY

The dollar remained rangebound as investors awaited key U.S. economic data, including the producer price index and later the consumer price index. These reports will be crucial for the Federal Reserve's ability to gauge the necessity of a rate cut that is expected in September. The yuan has eased against the dollar after China's central bank set its weakest fixing in nearly nine months. The yen's recent stability has calmed market nerves after last week's sharp swings, while the unwinding of yen carry trades appears to have slowed.