On Wednesday, the U.S. dollar index fell in the U.S. pre-session due to CPI data in line with expectations, but then Trump announced that he would resume the “heavy blow” against Iran, the U.S. index continued to rebound and returned to the 100 mark, and eventually closed up 0.09% at 100.04; the benchmark 10-year U.S. bond yield closed at 4.559%, and the 2-year bond yield, which is sensitive to the Fed’s policy rate, closed at 4.158%. The 2-year U.S. bond yield, which is sensitive to Fed policy rates, closed at 4.158%.
Even though the CPI data moderated market expectations for a Fed rate hike, spot gold continued to fall as the U.S.-Iran cease-fire faltered, dropping nearly $200 during the day and eventually closing down 4.46% at $4070.56/oz; spot silver closed down 3.02% at $63.38/oz.
Crude oil opened up in the US pre-market session. WTI crude oil returned above the $90 mark, eventually closing up 3.36% at $92.69/barrel; Brent crude oil eventually closed up 2.88% at $93.74/barrel.
U.S. stocks closed down 1.87% on the Dow, 1.62% on the S&P 500 and 1.98% on the Nasdaq. Super Micro Computer (SMCI.O) fell nearly 28 percent, while Tesla (TSLA.O) and Nvidia (NVDA.O) dropped more than 3 percent. The Nasdaq China Golden Dragon closed down 0.28 percent, with NetEase (NTES.O) up nearly 4 percent and Global Data (GDS.O) down 7 percent.