Market Overview

Fed Chair Powell expressed optimism about the U.S. economy, driving all three major stock indexes to new highs, with tech stocks leading the charge. Chipmakers outperformed, with $NVIDIA (NVDA.US)$ gaining 3.5%. Beneficiaries of the AI boom, $Marvell Technology (MRVL.US)$ and $Salesforce (CRM.US)$ , soared 23% and 11%, respectively, after strong earnings. Meanwhile, Chinese ADRs briefly fell 2%, but South Korea ETFs, French equities, and French bonds posted gains in the U.S.

Weak U.S. services data and Powell's support for cautious rate cuts sent 2-year Treasury yields plunging over 10 basis points to a one-month low. The dollar index turned negative, and the euro erased intraday gains as France moved to dissolve its government. Trump’s nomination of a pro-crypto SEC chair fueled Bitcoin’s rally, which surged over $4,000 intraday, nearing the $100,000 mark.

U.S. services activity weakened, while crude oil slipped from its weekly highs ahead of the OPEC+ meeting, with WTI falling 2%.

In Asia, the ChiNext Index dropped over 1%, led by losses in Xuzhou Economy and the Hainan Free Trade Zone. China's 10-year government bond yields hit record highs. Offshore yuan touched new intraday lows before recovering by 100 points, later rebounding nearly 400 points against its Asian session low during U.S. hours, closing above 7.27.