Market Overview

Last Friday, on the "Triple Witching Day," over $5 trillion in derivatives expired, pressuring the markets. Both $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ failed to rebound, dragged down by $NVIDIA (NVDA.US)$ for two days. The S&P still managed a three-week winning streak, while the Nasdaq narrowly avoided a weekly loss. $Dow Jones Industrial Average (.DJI.US)$ rose for four straight days, up nearly 1.5% for the week, marking its biggest weekly gain in a month. Nvidia's intraday drop of 5% saw it close down 3.2%, with a two-day loss of 6.6%, wiping out $222 billion in market value and dropping it to the third spot in global market capitalization.

With the French elections looming, the yield spread between French and German bonds hit its widest closing level since 2012. Following the U.S. PMI release, U.S. Treasury prices initially turned lower, with yields hitting daily highs. The dollar index accelerated its rise, hitting a seven-week high, with Bloomberg's dollar spot index marking a fifth consecutive weekly gain. The yen fell for seven straight days, nearing the 160 mark, its lowest in nearly eight weeks, increasing intervention risks from Japan. Bitcoin fell below $64,000, hitting a five-week low.

Commodities broadly declined. Crude oil retreated from a seven-week high but still posted a weekly gain of over 3%, extending gains for two weeks. After the U.S. PMI release, gold accelerated its decline, dropping nearly 2% intraday, ending two weeks of gains, and closing the week lower. Palladium surged 11% intraday, hitting a one-month high. Copper fell from a one-week high, marking five consecutive weeks of losses, while zinc retreated but still posted a second consecutive weekly gain.