Market Overview

The nomination of a new U.S. Treasury Secretary and eased tensions in the Middle East drove funds out of tech stocks and into cyclicals. $Dow Jones Industrial Average (.DJI.US)$ and small-cap stocks hit record highs, with the Dow rising over 400 points and the $Russell 2000 Index (.RUT.US)$ up as much as 2.5%. The $S&P 500 Index (.SPX.US)$ hit an intraday high before gains narrowed, while the $Nasdaq Composite Index (.IXIC.US)$ briefly turned negative after a 1% increase but ended slightly higher. $NVIDIA (NVDA.US)$ dropped more than 4% to a three-week low.

Chinese ADRs posted modest gains, with $NIO Inc (NIO.US)$ down 3.5% and $Alibaba (BABA.US)$ up about 3%.

The new Treasury Secretary nominee calmed markets, leading to a significant drop in U.S. Treasury yields and a 1% decline in the dollar, pulling back from two-year highs. Gold fell over 3%, ending a five-session rally, while Bitcoin saw profit-taking, slipping below $94,000.

Middle East tensions eased, sending oil prices down by about 3%.

In Asia, major A-share indices closed lower. Small-cap and dividend stocks led gains, with the Wind Micro-Cap Index up 3%. Chinese government bond futures rose across the board, while container shipping indices hit limit down.