Market Overview

U.S. inflation cools across the board, pushing market bets on a rate cut in September and driving a rotation in U.S. stocks.

$S&P 500 Index (.SPX.US)$ and $NASDAQ (NASDAQ.US)$ ended a seven-day winning streak, pulling back from record highs, with the Nasdaq dropping nearly 2%. The "Magnificent Seven" saw their biggest sell-off in a year and a half, with $Tesla (TSLA.US)$ plummeting 8.4%, its worst performance in nearly six months, ending its 11-day rally. $NVIDIA (NVDA.US)$ fell 5.6%, and the semiconductor index dropped 3.5%.

Yields on U.S. Treasury bonds fell sharply across the board by double digits. The dollar had its deepest drop in two months. The yen surged as much as 2.6%, its biggest gain since late 2022, with an anonymous official confirming government intervention to support the currency. Gold and silver prices soared.