Source: Wall Street Journal
In Post-Market Trading, Google rose by as much as 3.5%, while Tesla fell by more than 5%. Small-cap U.S. stocks led the gains. Amid the Meme stock frenzy, retail investors’ new favorites changed rapidly, with GoPro and Krispy Kreme surging at one point, while Kohl’s and Opendoor plummeted. The 10-year U.S. Treasury yield increased by nearly 4 basis points. The U.S. dollar fell for the fourth consecutive day, dropping below 97. Gold fell by nearly 1.7% from its daily high. Crude oil inventories declined significantly, leading to a deep V-shaped rebound in oil prices, which ultimately closed at the same level as the previous day. Coking coal futures surged by over 7% during the night session.
Boosted by news of an agreement between the U.S. and Japan and the near-finalization of a 15% tariff agreement between the U.S. and Europe, concerns over trade tensions eased, igniting risk sentiment. The S&P 500 and Nasdaq hit new highs, led by small-cap stocks. As risk aversion waned, U.S. Treasury yields rose across the board, and gold dropped below the $3400 mark. In the domestic night trading session, coking coal and coke continued their upward trend, with the price of the main coking coal Futures contract approaching 1200 yuan.
Previously suppressed small-cap U.S. stocks staged a rallya short squeeze.and led the broader market, while technology stocks lagged behind:
In Pre-Market Trading, according to CCTV News, Japan and the U.S. reached an agreement on tariffs, under which the U.S. will impose a 15% tariff on Japanese goods and increase imports of U.S. rice. The agreement also includes a commitment from Japan to invest $550 billion in the U.S. Additionally, Japanese Prime Minister Shigeru Ishiba denied rumors of his resignation. The Japanese yen experienced significant volatility, while the yield on 10-year Japanese government bonds rose to its highest level since 2008.
During the early U.S. trading session, the U.S. and Japan reached a trade agreement, alleviating concerns about a tariff war and boosting risk assets. U.S. benchmark indices collectively rose, with previously suppressed small-cap stocks staging a short squeeze, opening 0.7% higher and continuing to climb.
During the night session of domestic futures, the coking coal futures contract rose as much as 7.25%, reaching a high of 1193 yuan during the session, before the gain narrowed to 4.5%. This followed two consecutive trading days of limit-up. Coking coal futures rose 2.29%.
During regular trading hours, Wall Street Journal reported that the US and EU are close to reaching an agreement, with the US set to impose a 15% tariff on the EU. Risk sentiment was thoroughly ignited. The S&P 500 Index rose nearly 0.6%, while the Dow Jones Industrial Average gained over 370 points, rising more than 0.8%.
Meme stocks continued their wild ride, but new favorites emerged quickly. GoPro surged over 73%, and donut chain Krispy Kreme skyrocketed nearly 39% intraday, while previously surging Kohl’s and Opendoor saw sharp declines.
During the mid-session of the US market, White House trade advisor Peter Navarro commented on media reports about the US and EU nearing an agreement to impose a 15% tariff, stating, “I don’t believe it at all.” The euro briefly fell against the dollar but soon rebounded, breaking above 1.1770, reaching its highest level since July 7. After Navarro’s comments, the Nasdaq’s gains temporarily retraced, but then continued to rise, closing up 0.61% and setting a new record high.
In post-market trading, Google exceeded revenue expectations and increased its full-year capital expenditure, with its stock initially rising 3.5% before settling at a 1.80% gain. Tesla reported disappointing second-quarter results, with Elon Musk warning that Tesla may face “several very tough quarters,” leading to a post-market decline of over 5% in its stock price.
On Wednesday, risk appetite was ignited in the US stock market, with the S&P 500 and Nasdaq setting new highs, led by small-cap stocks. Google exceeded revenue expectations and increased its full-year capital expenditure, with its stock initially rising 3.5% before settling at a 1.80% gain. Tesla reported disappointing second-quarter results, with Elon Musk warning that Tesla may face “several very tough quarters,” leading to a post-market decline of over 5% in its stock price.
U.S. benchmark indices:
The S&P 500 Index closed up 49.29 points, or 0.78%, at 6358.91, setting a new closing high.
The Dow Jones Industrial Average rose 507.85 points, or 1.14%, to close at 45,010.29.
The Nasdaq Composite gained 127.33 points, or 0.61%, to close at 21,020.02, setting a new closing high. The NASDAQ 100 Index advanced 98.83 points, or 0.43%, to 23,162.41.
The E-mini Russell 2000 Index climbed 1.53% to 2,283.13.
The CBOE Volatility Index (VIX) fell 6.79% to 15.38.
U.S. industry ETFs:
The AI sector surged 5.02%, leading gains across U.S. sectors. The pharmaceuticals sector increased by 2.05%, the GONGYEETF rose 1.77%, and the energy sector gained 1.60%.
Magnificent 7:
The Magnificent 7 Index, which tracks the performance of the seven largest U.S. technology companies, rose 0.61% to 180.95 points.
NVIDIA closed up 2.25%, Meta Platforms gained 1.24%, Amazon and Tesla rose by up to 0.36%, Microsoft increased by up to 0.36%, while Apple fell 0.12% and Google A declined 0.58%.
Google’s revenue exceeded expectations and the company raised its full-year capital expenditure forecast, leading to a 3.5% increase in its share price in after-hours trading. The gain later moderated to 1.80%. Tesla reported disappointing second-quarter results, with CEO Elon Musk warning that the company may face ‘several very tough quarters’ ahead, causing the stock to fall more than 5% in after-hours trading.
Semiconductor stocks:
Chinese stocks:
The Nasdaq Golden Dragon China Index closed up 0.75%, at 7896.94 points.
Among the popular Chinese stocks, Pony.ai initially closed up 7.7%, WeRide rose 5.2%, Tencent gained 4%, and PDD Holdings increased by 3%.
Other stocks:
The ‘Trump Tariff Losers’ Index rose 1.56%, to 106.43 points.
Component stocks American Eagle closed up 6.18%, Coach gained 2.75%, Nike rose 1.8%, Mattel increased by 1.56%, Best Buy gained 0.45%, and Dollar Tree rose 0.13%.
Texas Instruments fell more than 13%, as tariffs impacted its chip business, and the company’s guidance fell short of expectations.
European stocks closed up nearly 1.1%, with the German DAX30 Index rising over 0.8%, the Italian banking sector gaining 2.4%, and the UK Index hitting a record high. The automotive sector rose more than 3.7%, with Stellantis closing up over 9.1% and Volvo AB Unsponsored ADR Class B increasing by more than 6.8%.
Pan-European stocks:
The EURO STOXX 600 Index closed up 1.08% at 550.22 points.
The Eurozone STOXX 50 Index opened higher with a gap and traded mostly at elevated levels, closing up 1.02% at 5344.25 points.
National indices:
The German DAX 30 Index closed up 0.83% at 24240.82 points.
The French CAC 40 Index closed up 1.37% at 7850.43 points.
The UK FTSE 100 Index closed up 0.42% at 9061.49 points, continuing to set new closing highs.
Sectors and Individual Stocks:
Among the Eurozone blue chips, Stellantis rose 9.14%, followed by Volkswagen Group, Mercedes-Benz Group, Prosus, BMW, UniCredit, BASF, Siemens, Deutsche Post, and Saint-Gobain, with gains ranging from 6.16% to 3.32%.
Among all components of the European STOXX 600 Index, Temenos rose 23.81%, Valmet gained 11.94%, Hiab increased 10.87%, and Stellantis was the fourth-best performer.
Long-term UK government bond yields rose by more than 8 basis points, while medium- and long-term German government bond yields increased by at least 5 basis points. After U.S. President Donald Trump announced a trade agreement with Japan, the market opened with a gap up and remained in a rising trend throughout the day. Following reports that the EU and the U.S. were close to reaching a 15% tariff agreement, the 10-year German government bond yield quickly climbed from around 2.6% to 2.640%, hitting a new daily high.
US Treasuries:
In the New York session, the 10-year U.S. Treasury benchmark yield rose 3.57 basis points to 4.3798%, trading within a range of 4.3519% to 4.3957% during the day.
The 2-year U.S. Treasury yield increased by 4.66 basis points to 3.88%, trading within a range of 3.8355% to 3.8885% during the day.
Eurozone bonds:
At the close of European trading, the yield on 10-year German government bonds rose by 5.0 basis points to 2.639%.
The yield on 10-year UK government bonds increased by 6.6 basis points to 4.635%. The yield on two-year UK government bonds rose by 4.0 basis points to 3.881%.
The yield on 10-year French government bonds climbed by 3.6 basis points to 3.300%, rising from around 3.27% to 3.301% at the close of trading.
Following the release of U.S.-EU trade news, the euro rose 0.55% against the U.S. dollar from its daily low. The U.S. dollar fell for the fourth consecutive day, dropping below the 97 mark.
USD:
At the close of New York trading, the ICE U.S. Dollar Index fell by 0.19% to 97.207, with the intraday trading range between 97.606 and 97.196.
The Bloomberg Dollar Index fell 0.24%, closing at 1192.96, with the intraday trading range between 1197.12 and 1192.81.
Non-USD Currencies:
In late New York trading, the euro rose 0.16% against the dollar, and the British pound rose 0.37% against the dollar. The Swiss franc was largely unchanged against the dollar, showing an M-shaped pattern throughout the day.
Among commodity currencies, the Australian dollar rose 0.72% against the dollar, the New Zealand dollar rose 0.74% against the dollar, and the Canadian dollar fell 0.07% against the dollar.
Japanese Yen:
In late New York trading, the dollar fell 0.08% against the yen, closing at 146.52 yen, with the intraday trading range between 147.21 and 146.11 yen.
Offshore Renminbi:
In late New York trading, the US Dollar traded at 7.1518 yuan against the offshore Chinese Yuan, within a range of 7.1727-7.1511 yuan for the day.
Cryptos:
In late New York trading, the CME-Bitcoin Block Orders Futures contract fell 1.12% from the previous New York close, settling at $118,000.
Crude Oil Product inventories saw a significant decline, leading to a deep V-shaped recovery in oil prices, which ultimately closed flat compared to the previous day. International crude oil prices fell 0.1%, while Henry Hub Natural Gas prices dropped about 5.4%. European natural gas prices reversed earlier gains, marking their fifth consecutive day of decline, as ample supply alleviated market tensions.
Crude Oil:
Henry Hub Natural Gas:
New York Gold Futures fell about 1.3%, briefly approaching $3,390, while New York Copper hit a record high.
Gold:
In the New York afternoon session, spot gold fell by 1.22%, trading at $3,389.50 per ounce.
COMEX Gold Futures declined by 1.28%, trading at $3,399.50 per ounce, with intraday trading ranging from $3,451.70 to $3,390.60.
Silver:
In the New York afternoon session, spot silver fell by 0.05%, trading at $39.2727 per ounce.
COMEX Silver Futures rose by 0.03%, trading at $39.565 per ounce.
Other Metals:
In the New York late session, COMEX Copper Futures rose by 2.02%, trading at $5.8370 per pound. According to Bloomberg data, it reached $5.93 at 21:31 (shortly after the U.S. market opened).
Spot Platinum fell by 1.94%, trading at $1416.74 per ounce; Spot Palladium rose by 0.32%, trading at $1282.27 per ounce.
Editor: Jayden
