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Market Wrap: Stocks, Bonds, Commodities |
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On Wednesday, major U.S. stock indexes slid more than 1%, with the S&P 500 falling 119 points (-1.62%) to 7,266, and the Nasdaq 100 down 576 points (-1.98%) to 28,508.
The Dow Jones closed 953 points lower (-1.87%) at 49,918.
Market sentiment was weighed down by U.S. President Donald Trump’s warning that the U.S. would hit Iran hard again. In fact, in after-market hours, U.S. military authorities did confirm that they had resumed strikes against Iran.
Meanwhile, U.S. data showed that the annual inflation rate accelerated to 4.2% in May, above the 4.0% forecast and up from 3.8% in April, the highest level since April 2023. The core inflation rate ticked up to 2.9% year-on-year, in line with expectations.
The U.S. 10-year Treasury yield climbed 3.6 basis points to 4.554%. The U.S. Federal Reserve will decide on interest rates next week.
Semiconductor stocks slid across the board, with Nvidia (NVDA) falling 3.73%, Broadcom (AVGO) down 5.12%, Advanced Micro Devices (AMD) down 4.86%, and Micron Technology (MU) down 4.70%.
Also, Qualcomm (QCOM) fell 6.92%, Arm Holdings (ARM) dropped 5.37%, and Marvell Technology (MRVL) was down 5.35%.
Mega-cap tech stocks also closed lower, with Alphabet (GOOGL) losing 2.16%, Tesla (TSLA) down 3.80%, Amazon (AMZN) down 2.53%, Meta (META) down 2.33%, and Microsoft (MSFT) down 1.50%.
Super Micro Computer (SMCI) plunged 27.98% after unveiling plans to raise about 7 billion dollars to fund purchases of components needed to fulfill customer orders of artificial intelligence (AI) servers.
Oracle (ORCL) closed 2.21% lower, and slumped another 10% in after-market hours. The company posted better-than-expected quarterly results, while announcing plans to raise 40 billion dollars to fund its AI data-center buildout.
In Europe, the DAX 40 dropped another 0.97%, and the CAC 40 was down 0.51%, while the FTSE 100 closed 0.27% higher.
U.S. WTI crude futures jumped to 92.50 dollars a barrel in early Asian trading hours on Thursday after the U.S. military resumed strikes against Iran.
Gold tumbled 188 dollars (-4.42%) overnight to 4,072 dollars an ounce.
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The U.S. dollar held steady after the inflation report, with the dollar index edging higher to 100.03.
EUR/USD dipped 4 pips to 1.1539. The European Central Bank is expected to hike its key interest rate by 25 basis points later today.
USD/JPY gained 17 pips to 160.53. The Bank of Japan is widely expected to hike interest rates next week.
USD/CAD eased 5 pips to 1.3942. As expected, Canada’s central bank kept its key interest rate unchanged at 2.25%.
GBP/USD slipped 9 pips to 1.3367, AUD/USD declined 29 pips to 0.6999.
USD/CHF advanced 17 pips to 0.7997.
Bitcoin remained subdued at 61,300 dollars.
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In Asian trading hours, EUR/USD rose to 1.1550 and GBP/USD rebounded to 1.3380.
Meanwhile, USD/JPY was firm at 160.53.
Gold dropped to 4,058 dollars.
Bitcoin edged up to 62,017 dollars.
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The European Central Bank is expected to raise its main interest rates by 25 basis points, with the deposit facility rate climbing to 2.25%.
In the U.S., producer price index is estimated to be up 6.8% year-on-year in May, while the weekly initial jobless claims are expected at 219,000.
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