Equities: The Nasdaq 100 rallied 2.5% to lead the session, driven by outperformance among mega-cap tech stocks. The S&P 500 gained 1.1% to close out the pre-holiday week on a positive note. Small caps followed the risk-on move, with the Russell 2000 closing up 2.1%, reversing a multi-session downward trend.
However, in today’s Asia opening session, the E-mini futures on the S&P 500 and Nasdaq 100 declined by 0.5% and 0.7% as US Vice President JP Vance delays trip for Iran talks as the 60-day countdown starts to reach a nuclear agreement and a permanent US-Iran peace deal.
Fixed Income: Sovereign bonds stabilised as long-term inflation risk premiums eased with lower oil prices. The 10-year U.S. Treasury yield fell 3 basis points to 4.45% but remains above its 50-day moving average at around 4.40%. Conversely, short-term yields hovered near multi-decade highs, locking the curve in a deep inversion following the FOMC’s hawkish dot plot shift.
FX: The U.S. Dollar Index remained firmly supported near recent highs, underpinned by the Fed’s upgraded economic projections, and broke above the 100.55 major range resistance level, which had been in place since May 2025.
The euro and the British pound extended their losses by 0.4% and 0.7%, respectively, for the second consecutive session on Thursday, trading at 3-month lows of 1.1458 and 1.3205 against the greenback.
Commodities: WTI crude plummeted below $74 before recovering slightly to settle near $75.50/bbl, holding right at the key 200-day moving average after a steep 10% decline on the week. Brent crude followed suit, closing under $80.00 at US$79.25/bbl on Thursday. Spot gold slid 1.4 % to close at $4,209 and extended its losses by 1.4% in today’s Asian session to hover close to the 11 June 2026 low of $4,024/oz.