MPC Morning Call 26th September – Silver and Platinum surge to multi-decade highs

Overnight – Silver and Platinum surge to multi-decade highs

Stocks fell for a third-straight day as stronger-than-expected economic data dented hopes for deep Federal Reserve rate cuts. Despite this Silver and Platinum prices rallied to multi-decade highs as supply concerns and an imminent US Govt shutdown loom

Silver Futures climbed 2.1% to $45.13 per ounce and Platinum Futures rose 2.9% to $1,526.25 per ounce in the last 24 hours, while copper prices surged sharply after Freeport-McMoRan declared force majeure at its Grasberg mine in Indonesia.

U.S. economic data this week highlighted resilience, with jobless claims dropping by 14,000 to 218,000 and revised second-quarter GDP growth showing a stronger-than-expected 3.8% expansion after an earlier contraction. This positive momentum points to underlying strength in the labor market and the broader economy, though comments from Fed Chair Jerome Powell injected caution by stressing that there is “no risk-free path” in balancing inflation risks against labor market cooling. While the Fed recently cut rates by 25 basis points, uncertainty remains over how many additional reductions will be enacted this year, with projections split among policymakers.

Markets are also on alert as investors await the Fed’s preferred inflation measure, the personal consumption expenditures (PCE) index, while grappling with the possibility of a government shutdown. Lawmakers remain deadlocked over short-term funding measures, and reports indicate the White House has already instructed federal agencies to prepare for potential layoffs if a shutdown takes effect next week. The political standoff has added another layer of risk at a time when monetary policy and interest rate outlooks are already weighing heavily on investor sentiment.

In corporate earnings, results painted a mixed picture. Nvidia bounced nearly 1% as bargain hunters stepped in after recent weakness, while Intel surged on reports it has approached Apple for potential support amid its struggles in the chipmaking sector. In contrast, Stitch Fix and CarMax both tumbled as weak demand and disappointing financial results dragged down their outlooks. Accenture, however, delivered stronger-than-expected revenue and announced an $865 million restructuring plan, aimed at positioning the company to seize growing demand in digital and artificial intelligence services.