Financial Daily: Middle East tensions roil global markets! US tech stocks slump, where will gold and the dollar go?

- Focus

– Senior Iranian officials said that the US-proposed conflict resolution plan is 'unilateral and unfair.'

– Trump announced a 10-day suspension of strikes on Iran's energy facilities.

– Organization for Economic Cooperation and Development: Escalation of Middle East conflict derails global economy from a robust growth trajectory, while near halt of energy shipments through the Strait of Hormuz could push inflation higher.

Content compiled by the 'Harbor Family Office' under Henry Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] All three major U.S. stock indexes closed lower, with significant declines in tech stocks.

On Thursday, U.S. President Trump stated he was uncertain and unconcerned about reaching an agreement with Iran, mentioning that before withdrawing from the Middle East, the U.S. military had other targets it wanted to hit. Trump also revealed the suspense left earlier, 'a big gift from Iran to the U.S.': allowing ten oil tankers to pass through the Strait of Hormuz. These numerous developments led to uncertainty over the prospect of heightened tensions in the Middle East. Oil prices continued to rise; however, after Iran indicated it was reviewing the U.S.-proposed plan to end the Middle East war, oil prices fell. The three major U.S. indexes all closed lower, with the Nasdaq dropping nearly 2.4%.

At the close, the S&P 500 Index fell 1.74% to 6,477.16 points; the Nasdaq Composite Index dropped 2.38% to 21,408.081 points; the Dow Jones Industrial Average declined 1.01% to 45,960.11 points. The VIX panic index rose 8.17% to 27.40 points. Most industry index ETFs fell, with semiconductor ETF plunging 4.6%, and technology sector ETF down over 3%.

Tech stocks generally saw significant declines, with the index of the seven major U.S. tech giants falling 2.77%. Meta plummeted 7.92%, NVIDIA dropped 4.16%, Tesla fell about 3.6%, Google A slid 3.43%, while Apple edged up 0.11%. The Nasdaq Golden Dragon China Index fell 2.55% to 6,721.22 points. Among popular Chinese stocks, Pony AI plunged 15%, GDS Holdings and Xpeng both fell about 6.6%, Baidu dropped around 5%, and Alibaba declined approximately 3.5%. Individually, Circle shares fell 5.31%, Taiwan Semiconductor Manufacturing dropped 6.2%, and AMD fell nearly 7.5%.

[European Market] European major country indices generally fell on Thursday.

On Thursday, major European country indices fell more than 1%, erasing gains from the previous trading day. At the close, the pan-European STOXX 600 Index fell 1.13% to 580.84 points, and the pan-European STOXX 50 Index dropped 1.48% to 5,565.93 points.

Germany's DAX 30 Index fell 1.50% to 22,612.97 points; France's CAC 40 Index declined 0.98% to 7,769.31 points; and the UK's FTSE 100 Index dropped 1.33% to 9,972.17 points.

[Asian Market] Asian stocks trended downward on Thursday, with South Korea’s major indexes falling more than 3%.

On Thursday, Asian stocks trended downward, with South Korea’s main index falling more than 3%. At the close, Japan's Nikkei 225 Index dropped 0.3% to 53,603.65 points, and Japan's TOPIX Index fell 0.2% to 3,642.80 points. South Korea's KOSPI Index declined 3.2% to 5,460.46 points.

【Hong Kong Market】All three major Hong Kong stock indices closed lower, with the Hang Seng Tech Index down over 3%.

Hong Kong stocks trended lower throughout Thursday, with all three major indices closing in negative territory. The Hang Seng Tech Index fell more than 3%. By market close, the Hang Seng Index was down 1.89% at 24,856.43 points, the Hang Seng Tech Index dropped 3.28% to 4,761.54 points, and the Hang Seng China Enterprises Index declined 2.25% to 8,389.93 points. In terms of sectors, tech stocks were broadly weaker, with Kuaishou plunging over 14%, Alibaba falling more than 4.5%, Meituan closing down 3.67%, and NetEase and Baidu Group both dropping over 2%. The durable consumer goods sector declined, with Pop Mart falling over 10% on Thursday after a 22% plunge on Wednesday. The semiconductor sector also showed weakness, with Huahong Semiconductor falling more than 6%.

【A-Share Market】A-shares formed an inverted V-shape, with the three major indices down over 1%.

A-shares opened lower on Thursday and formed an inverted V-shaped pattern, weakening significantly in the afternoon session. All three major indices ended down over 1%. At the close, the Shanghai Composite Index fell 1.09% to 3,889.08 points, the Shenzhen Component Index dropped 1.41% to 13,606.44 points, and the ChiNext Index declined 1.34% to 3,272.49 points. Sector-wise, the power sector performed strongly, with Huadian Energy and New Energy Taishan among the stocks hitting their daily limit up. Memory concept stocks collectively fell, with Taiji Industries, Zhaoyi Innovation, and Baiwei Storage all dropping more than 5%. Insurance, environmental protection, gold, and military industries were among the sectors leading the declines.

– Bonds

【US Bonds】US Treasury yields strengthened.

Weak demand for US Treasuries drove their yields higher. In late New York trading, the yield on the 10-year US Treasury note rose 7.95 basis points to 4.4117%, while the yield on the two-year note climbed 10.05 basis points to 3.9858%.

【Non-US Bond Markets】European government bond yields rose significantly.

European government bond yields rose significantly on Thursday. In late European trading, the yield on Germany’s 10-year government bond increased by 11.6 basis points, while the two-year German government bond yield rose by 11.3 basis points. The yield on the UK’s 10-year government bond climbed 13.6 basis points to 4.975%, and the yield on the two-year UK bond rose 11.9 basis points. France’s 10-year government bond yield surged by 14.9 basis points, and its two-year yield increased by 11.6 basis points.

[China Bond Market] Treasury futures closed higher across the board on Thursday

Government bond futures closed higher across the board on Thursday. By market close, the 30-year main contract rose 0.22%, the 10-year main contract gained 0.08%, the 5-year main contract increased 0.07%, and the 2-year main contract climbed 0.02%.

– Foreign exchange

【Dollar】The dollar rallied in late trading, with the ICE Dollar Index rising 0.38%.

The US dollar surged during the New York session late Thursday. At the New York close, the ICE US Dollar Index rose by 0.38% to 99.980 points, while the Bloomberg Dollar Index climbed 0.36% to 1,215.82 points.

[Non-US Currencies] The US dollar strengthened against most major currencies.

The US dollar strengthened against major global currencies. During the New York session, the dollar rose 0.21% against the yen to 159.80 yen. The euro fell 0.28% against the dollar to 1.1526 dollars, and sterling dropped 0.25% against the dollar to 1.3329 dollars.

[Renminbi] The US dollar stood at 6.9203 yuan against the offshore renminbi.

During the New York session, the US dollar rose 175 points against the offshore renminbi from the previous trading day’s close to 6.9203 yuan. The onshore renminbi fell 64 points against the dollar from the previous trading day's closing price to 6.9041 yuan.

[Cryptocurrency] The cryptocurrency market trended lower throughout the day.

The cryptocurrency market declined throughout the day. During the New York session, Bitcoin closed more than 4% lower, with prices falling below $69,000. Ethereum dropped nearly 6%.

– Product

[Energy] US crude oil futures rose over 4.6%.

As the situation in the Middle East became increasingly complex, uncertainty about the conflict weighed on the market, pushing oil prices higher. During the New York session, US crude oil futures jumped over 4.6%, settling at $94.48 per barrel.

[Precious Metals] Precious metals were broadly lower, with gold prices falling below $4,400.

Precious Metals:Gold prices continued to decline throughout the day, with spot gold dropping below $4,400. During the New York session, spot gold fell approximately 2.8% to $4,379.01 per ounce, while US gold futures dropped around 3.9% to $4,376.30 per ounce.

Metals Futures Market:Precious metals prices generally declined, with spot silver falling approximately 3% to $69.07 per ounce; US silver futures dropped around 4.5% to $69.17 per ounce. London copper futures fell about 1.4% to $12,148.50 per ton.

[Disclaimer]

The content above is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), sourced from market information gathered from various channels. Neither Harbor Family Office nor its group members participated in preparing the content, nor did they explicitly or implicitly endorse or approve it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently evaluate and judge this information and are advised to consult professionals before making any investment or trading decisions. Without authorization, no one may reproduce, copy, or publish the content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and relevant providers.

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