The Nasdaq Composite reached a new record high in the New York market, while the 10-year Treasury yield fell and the dollar traded slightly firmer against major currencies.
The Nasdaq Composite ended the day at a record high, with buying led by major AI-related stocks. Gains in semiconductor stocks and a sharp rise in Meta shares also supported the market, while AMD's market capitalization briefly reached the $1 trillion mark for the first time. Lower crude oil prices and declines in European bond yields also supported equities.
In the bond market, the 10-year Treasury yield fell and traded around 4.955%. The 2-year Treasury yield remained higher, and the spread between the 2-year and 10-year yields narrowed. Markets continued to price in the possibility of another rate hike at the next FOMC meeting, while expectations for higher policy rates ahead remained in focus. Five-year and 10-year breakeven inflation rates both trended lower.
In foreign exchange, the dollar index rebounded, with the dollar reaching the mid-¥157 range against the yen. Reports of a possible Bank of Japan policy rate hike and a rate check heightened concerns about foreign exchange intervention. In commodities, gold fell, while North Sea Brent and WTI also declined, mainly on lower prices.