On Thursday, the euro weakened following the European Central Bank’s interest rate announcement. Combined with a stronger-than-expected rise in the PPI, which boosted expectations for a Fed rate hike next week, the U.S. Dollar Index climbed back above the 99 mark, ultimately closing up 0.28% at 99.08.The yield on the benchmark 10-year U.S. Treasury note rose nearly 12 basis points to close at 4.967%, hitting a new three-year high; the yield on the 2-year U.S. Treasury note, which is sensitive to the Fed’s policy rate, closed up more than 15 basis points at 4.594%.
Under pressure from the simultaneous rise in the U.S. dollar and Treasury yields, spot gold fell sharply, at one point plunging $120 from its daily high, and ultimately closed down 1.94% at $4,316.76 per ounce;spot silver ultimately closed down 5.48% at $63.6 per ounce.
International oil prices rose for the fourth consecutive trading day as attacks on shipping in the Middle East continued to escalate, with a new round of attacks by Houthi rebels on Saudi Arabia heightening market concerns about the region’s supply outlook.WTI crude oil broke through the $100 mark, ultimately closing up 6.73% at $100.59 per barrel, hitting its highest level since May 20; Brent crude oil closed up 6.71% at $106.30 per barrel.U.S. diesel prices broke through the $6 per gallon mark.
The three major U.S. stock indexes closed lower across the board, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.58%, and the Nasdaq down 0.65%. Nvidia (NVDA.O) fell 2.2%,Intel (INTC.O) fell 5.5%, SK Hynix (SKHY.O) fell 5.2%, and Apple (AAPL.O) rose 3.5%. The Nasdaq China Golden Dragon Index closed up 0.66%, while NIO (NIO.N) fell 3%.