On Thursday, according to Japanese media reports, Japan and the U.S. joined forces to intervene and curb the yen’s depreciation, causing the dollar to plummet by more than 400 points against the yen at one point, breaking below the 158 mark. Meanwhile, the U.S. June PCE turned negative on a month-over-month basis, which to some extent supported the Federal Reserve’s decision this week to keep interest rates unchanged.
As Japan reportedly intervened in the foreign exchange market by buying yen and selling dollars, the U.S. Dollar Index plummeted during the session, falling below the 100 mark. It ultimately closed down 0.82% at 99.98, marking its largest single-day decline since January;The benchmark 10-year U.S. Treasury yield closed at 4.677%, while the 2-year U.S. Treasury yield, which is sensitive to the Fed’s policy rate, closed at 4.256%.
Benefiting from the weaker dollar, spot gold closed above the $4,100 mark for the first time in a week, ultimately rising 0.92% to settle at $4,103.84 per ounce;Spot silver returned to the $59 level, ultimately closing up 2.35% at $59.01 per ounce.
International oil prices traded sideways as Pakistan stated that the U.S. and Iran are still negotiating over the Strait of Hormuz.WTI crude opened lower and traded within a narrow range, eventually closing down 1.13% at $82.65 per barrel; Brent crude retreated after touching the $89 mark during the session, ultimately closing down 1.18% at $86.87 per barrel.
The three major U.S. stock indices opened higher and continued to rise throughout the session; the Dow Jones Industrial Average closed up 1.19%, the S&P 500 rose 1.67%, and the Nasdaq Composite gained 2.78%.Micron Technology (MU.O) rose 18%, SanDisk (SNDK.O) rose 26%, SK Hynix (SKHY.O) rose 17%, and Nvidia (NVDA.O) rose more than 2%.The Nasdaq Golden Dragon China Index rose 1.05%, with iQIYI (IQ.O) up 4%. Microsoft (MSFT.O) saw its market capitalization surge by $450 billion in a single day, setting a new all-time high.