U.S. Treasury yields have rebounded, with the 10-year yield nearing a three-month high due to cautious Federal Reserve commentary on interest rate cuts and increasing market pressures, often described as "Trump trades." This impact comes as major U.S. stock indices show mixed results during the ongoing earnings season.
In the stock market, there has been a significant shift in investor interest towards technology stocks, leading to the Nasdaq's seventh consecutive week of gains. In contrast, the S&P 500 and the Dow Jones Industrial Average ended their six-week winning streaks, recording declines of 0.96% and 2.68%, respectively. The Nasdaq saw a modest increase of 0.16%. Sector-wise, solar and semiconductor stocks led the gains, whereas pharmaceutical and industrial stocks experienced declines.
Chinese stocks outperformed the broader U.S. market despite recording losses for the week. The U.S. Dollar Index also pushed toward a three-month high, marking its fourth consecutive week of gains with a 0.8% weekly increase. The yen depreciated by 1.9% this week, partly influenced by political uncertainties.
Global instability, including tensions in the Middle East and the upcoming U.S. elections, alongside the prospect of central bank rate cuts, have driven spot gold prices to a new historical high of $2,758.49 during the week, with an overall gain of over 0.9%. This marks the sixth weekly increase in the past seven weeks.
Oil prices also trended upward, with both WTI and Brent crude posting gains of over 4% this week, overshadowing mid-week data showing weak U.S. inventories and demand.
