Technology stocks show and S&P have been thrilling for three consecutive positive moments, Nvidia rose more than 4%, Tencent rose more than 3%, US dollar reversed V-shaped, gold has a new low in one month

Source: Wall Street News

Risks of a slowing U.S. economy and sticky inflation persist, yet the broader U.S. stock market has rebounded more than 20% from its intraday low in April. On Wednesday, with no new progress in trade negotiations, the rally in U.S. equities showed signs of fatigue: the S&P 500 narrowly secured a three-day winning streak, while the Dow Jones Industrial Average fell for the second consecutive day. Tech stocks remained robust, serving as the sole pillar driving the market higher. Speculation about a weak-dollar bias in U.S. trade negotiations nearly caused the U.S. dollar to decline for two straight days.  

U.S. stocks were mixed, with tech and AI shares leading gains in the two major indices, while the Dow fluctuated to a loss. The U.S. dollar staged an intraday V-shaped reversal.  

Before the U.S. market opened, as macro risks eased, investors refocused on tech stocks. Tencent Holdings released its earnings report on Wednesday, reporting a 13% year-on-year increase in Q1 revenue, a new high in *Honor of Kings*'s revenue, and substantial contributions from AI. Tencent's ADR rose approximately 4% in pre-market trading. According to Xinhua Finance, the U.S. and South Korea had discussed foreign exchange policies, causing the U.S. dollar to fall, while the South Korean won and Japanese yen rose, gaining nearly 2% and over 1% respectively during intraday trading.  

In the early U.S. trading session, the market awaited Powell's speech on the economy, and the strong upward momentum in risk assets weakened. Major indices fluctuated throughout the day, with tech stocks leading sector gains and small-cap stocks underperforming. Investors reduced bets on Federal Reserve rate cuts, pushing the 10-year U.S. Treasury yield to 4.529%, its first close above 4.5% since February.  

During the U.S. mid-session, reports stated that the U.S. would not seek dollar depreciation in trade agreements. Following this, the U.S. Dollar Index fully erased its earlier losses and turned higher, while the South Korean won and Japanese yen pared at least half of their intraday gains.

U.S. stocks were mixed on Wednesday, with the Dow Jones Industrial Average falling for the second consecutive day. The "Mag7" stocks advanced further, dominating the S&P 500 Index. NVIDIA's market capitalization surpassed Apple again, and META's market capitalization exceeded $2 trillion anew. Cisco rose nearly 4% in after-hours trading following its earnings report. The China concept index rebounded by over 1%, but JD.com fell by more than 4%. Boosted by Tencent's earnings, Prosus—the major shareholder of Tencent—saw its share price rise 3.8%, hitting a new high in over four years.  

**Closing Data of Three Major U.S. Stock Indices:**  

- S&P 500 Index: Up 6.03 points, +0.10%, at 5,892.58  

- Dow Jones Industrial Average: Down 89.37 points, -0.21%, at 42,051.06  

- Nasdaq Composite Index: Up 136.72 points, +0.72%, at 19,146.81  

- Nasdaq 100 Index: Up 121.51 points, +0.57%, at 21,319.21  

- Russell 2000 Index: Down 0.88%, at 2,083.80  

- CBOE Volatility Index (VIX): Up 2.25%, at 18.63  

**U.S. Sector ETFs:**  

- Healthcare ETF: Down 2.35%  

- Biotech Index ETF: Down 2.18%  

- Global Airline Industry ETF: Down 2.12%  

- Consumer Discretionary ETF: Up 0.39%  

- Internet Stock Index ETF & Global Technology Stock Index ETF: Up 0.63%  

- Technology Sector ETF: Up 0.65%  

- Semiconductor ETF: Up 0.99%

"The Seven Sisters of Technology":  

The Magnificent 7 index of U.S. tech giants rose 1.55% to 162.69 points.  

NVIDIA closed up 4.16%, Tesla gained 4.07%, Google Class A rose 3.66%, Microsoft and Meta advanced up to 0.85%, while Apple fell 0.28% and Amazon dropped 0.53%.

Chip stocks:  

The Philadelphia Semiconductor Index closed up 0.60% at 4,960.74.  

AMD closed up 4.68%, while TSMC ADR rose 0.4%.  

AI concept stocks:  

Tempus AI fell 5.99%, Palantir rose 1.62%, and Applovin closed up 1.74%.  

Chinese concept stocks:  

The Nasdaq Golden Dragon China Index closed up 1.17% at 7,530.44.  

Among popular Chinese concept stocks, Tencent ADR rose about 4%, Li Auto and New Oriental gained up to 2.7%, while Xiaomi, Yum China, Alibaba, and Baidu rose at least 1.4%.  

Other individual stocks:  

Berkshire Hathaway Class B shares under Buffett fell 1.66%. Eli Lilly dropped 4.09%.  

Boosted by Tencent's earnings, Prosus (Tencent's major shareholder) rose 2.75%.  

The "Trump Tariff Losers" index fell 0.98% to 97.11. Constituent stocks American Eagle fell 6.45%, Fluence Energy dropped 5.71%, and 3M declined 1.9%.  

European stocks closed down over 0.2%, with Alstom, TUI, and Bayer falling over 10%, while Burberry rose 17% and Prosus gained over 2.7%. Germany's stock index fell nearly 0.5% and lost its all-time closing high, while Italy's banking index rose 1.4%.  

Pan-European stocks:  

The STOXX 600 Index closed down 0.24% at 543.88.  

The Euro Stoxx 50 Index closed down 0.24% at 5,403.44.  

National stock indices:  

Germany's DAX 30 Index fell 0.47% to 23,527.01, retreating from its all-time closing high.  

France's CAC 40 Index fell 0.47% to 7,836.79.  

The UK's FTSE 100 Index fell 0.21% to 8,585.01.  

Sectors and individual stocks:  

Among Eurozone blue chips, Prosus closed up 2.75% (South African shares rose 2.50%), followed by UniCredit, Santander, Intesa Sanpaolo, ING Group, and BBVA, which rose 1.92%-1.32%.  

Among all constituents of the STOXX 600 Index, Burberry rose 17.03%, FLSmidth & Co. rose 11.58%, Millennium bcp rose 5.68% (third largest gain), and Maersk Class B shares rose 4.78%, performing strongly.  

U.S. Treasury prices fell as traders continued to reduce expectations for Federal Reserve rate cuts. The 10-year U.S. Treasury yield rose to 4.529%, closing above 4.5% for the first time since February. Medium-to-long-term German bond yields rose about 2 basis points, and UK bond yields generally rose over 4 basis points.  

U.S. Treasuries:  

At the New York close, the 10-year Treasury yield rose 7.13 basis points to a daily high of 4.5363%.  

The 2-year Treasury yield rose about 6.0 basis points to a daily high of 4.0592%.

**European Bonds:**  

At the end of the European trading session, Germany's 10-year government bond yield rose 1.9 basis points to 2.699%. The 2-year German bond yield increased 0.4 basis points to 1.940%.  

The UK's 10-year government bond yield rose 4.4 basis points to 4.714%, breaking out of its sideways trend and moving higher after 20:30 Beijing time.  

Earlier, Xinhua Finance reported that South Korea confirmed discussions with the U.S. on foreign exchange policies, causing the U.S. dollar to fall. USD/KRW hit a one-week low, dropping 1.92% intraday. However, after reports claimed the U.S. would not seek dollar depreciation, the U.S. Dollar Index surged approximately 20 points from its low to above 101, turning positive for the day.  

**U.S. Dollar:**  

At the New York close, the ICE U.S. Dollar Index rose 0.05% to 101.052, staging an intraday V-shaped reversal after hitting a daily low of 100.271 at 17:49 Beijing time.  

The Bloomberg Dollar Index gained 0.05% to 1231.96, also hitting a daily low of 1224.24 at 17:50 Beijing time.

**European Bonds:**  

At the end of the European trading session, Germany's 10-year government bond yield rose 1.9 basis points to 2.699%. The 2-year German bond yield increased 0.4 basis points to 1.940%.  

The UK's 10-year government bond yield rose 4.4 basis points to 4.714%, breaking out of its sideways trend and moving higher after 20:30 Beijing time.  

Earlier, Xinhua Finance reported that South Korea confirmed discussions with the U.S. on foreign exchange policies, causing the U.S. dollar to fall. USD/KRW hit a one-week low, dropping 1.92% intraday. However, after reports claimed the U.S. would not seek dollar depreciation, the U.S. Dollar Index surged approximately 20 points from its low to above 101, turning positive for the day.  

**U.S. Dollar:**  

At the New York close, the ICE U.S. Dollar Index rose 0.05% to 101.052, staging an intraday V-shaped reversal after hitting a daily low of 100.271 at 17:49 Beijing time.  

The Bloomberg Dollar Index gained 0.05% to 1231.96, also hitting a daily low of 1224.24 at 17:50 Beijing time.

Last week, the EIA crude oil inventory in the United States increased by 3.45 million barrels. Bloomberg users had expected a decrease of 1.65 million barrels, analysts projected a reduction of 1,963,500 barrels, and the previous week saw a decline of 2,032,000 barrels. After the release of the weekly EIA crude oil inventory report, crude oil once again fell below the $62.60 per barrel level.  

**Crude Oil:**  

- WTI June crude oil futures closed down $0.52, a decline of over 0.81%, at $63.15 per barrel.  

- Brent July crude oil futures fell $0.54, a 0.81% drop, to settle at $66.09 per barrel.  

**Natural Gas:**  

NYMEX June natural gas futures closed down 4.25% at $3.4920 per million British thermal units.  

With risk aversion cooling, spot gold fell more than 2.1%, briefly dropping below $3,170 in late U.S. trading, while silver also fell over 2%.  

**Gold:**  

- At the New York close, spot gold dropped 2.14% to $3,180.90 per ounce.  

- COMEX gold futures fell 1.91% to $3,185.70 per ounce.

**Silver:**  

At the New York close, spot silver fell 2.13% to $32.2265 per ounce, with a notable plunge at 20:00.  

COMEX silver futures dropped 2.23% to $32.370 per ounce.  

**Other Metals:**  

At the New York close, COMEX copper futures fell 1.72% to $4.6420 per pound.  

LME copper closed up $7 at $9,606 per ton.  

LME nickel closed up $136 at $15,871 per ton. LME zinc closed up $60 at $2,765 per ton.  

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