- The Dow Jones Industrial Average closed slightly higher, reaching a new all-time high, indicating continued support for traditional blue-chip stocks from capital seeking safety and rotational allocation.
- Expectations of tech giants and individual stock unlocks pressured the Nasdaq index to decline, with semiconductor and major unlisted giant secondary concept stocks showing significant divergence.
- International crude oil prices fell for three consecutive days due to geopolitical situation and reconciliation rumors, while prices of precious metals like gold and silver broke key thresholds and reached new highs.
Dow Hits Record High Amid Divergence in U.S. Stock Indices
The three major U.S. stock indices showed divergent trends, with the Dow Jones Industrial Average rising against the trend by 0.49% to 54,349.12 points, reaching a new all-time high, driven by buying in traditional safe-haven and value sectors. The S&P 500 and Nasdaq indices were dragged down by a valuation correction in tech stocks, falling by 0.17% and 0.83%, respectively. Market funds are rotating from high-valuation growth stocks to defensive traditional industries amid uncertainties in interest rate policies and industry-specific news.
Core Tech Stocks Experience Volatility Amid Unlock Pressure
The tech sector showed severe internal divergence, with Nvidia (NVDA:US) rising 3.43% supported by chip demand expectations, while Advanced Micro Devices (AMD:US) fell significantly by 7.04%. SpaceX (SPCX:US) saw its stock price drop sharply by 13.61% due to the impending unlock of insider shares valued at approximately $116 billion. Concerns about large-scale liquidity release temporarily suppressed risk appetite for high-valuation targets.
Geopolitical Easing Expectations Weigh on Oil Prices
International oil prices fell for three consecutive trading days, with WTI and Brent crude settlement prices retreating to $75.22 and $79.45, respectively. Previous reports suggested that Iran and Oman were close to finalizing a transit agreement for the Strait of Hormuz, leading the market to expect a gradual reduction in risk premiums for oil shipping routes. The cooling of supply-side disturbance expectations prompted funds to close short positions in the commodity market.
Exchange Rate Intervention Expectations and Strong Precious Metal Safe Haven
Spot gold broke through the $4,200 mark, reaching $4,246.17, while silver climbed to $62.047, reflecting a concentration of safe-haven funds in hard currencies. In the foreign exchange market, joint intervention by the U.S. and Japan and expectations of a rate hike by the Bank of Japan prompted the market to reassess the yen's trajectory, with investment banks predicting the USD/JPY exchange rate could approach the 149 range within the year. Major currencies in the Americas and Europe showed narrow fluctuations against the dollar.
