Financial Daily: All three major U.S. stock indices barely reached new highs together; U.S.-Iran peace talks remain unresolved, and oil prices dropped more than 5%, drawing global market attention

- Key Focus

– U.S. President Trump stated that unresolved issues remain in the peace negotiations between the U.S. and Iran

– Federal Reserve Board Governor Cook stated that short-term interest rates should remain unchanged and be ready to hike if necessary

– Governments of multiple EU countries have passed legislation eliminating import tariffs on a range of U.S. goods

Content compiled by 'Harbor Family Office,' a subsidiary of Henry Jia Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[U.S. Market] U.S. stocks fluctuated intraday on Middle East-related news, with all three major indices hitting new highs

On Wednesday, ongoing news regarding the Middle East situation triggered market volatility. During U.S. trading hours, the White House denied Iran’s claim of a U.S.-Iran memorandum of understanding framework as fabricated, capping gains in U.S. equities and briefly turning them negative intraday. However, U.S. stocks rebounded slightly by the close after Trump hinted the Strait of Hormuz would soon reopen, allowing all three major U.S. indices to narrowly reach record highs.

At the close, the S&P 500 rose 0.02% to 7,520.36; the Nasdaq Composite gained 0.07% to 26,674.735; and the Dow Jones Industrial Average advanced 0.36% to 50,644.28. The VIX fear index fell 4.23% to 16.29. The Philadelphia Semiconductor Index retreated 1.36% to 12,702.189.

The U.S. tech megacap index rose 0.47%, with Meta up 3.74%, Amazon up 2.47%, Tesla up 1.56%, Apple up 0.82%, Microsoft down 0.81%, and NVIDIA down 1.05%. The Nasdaq Golden Dragon China Index gained 1.05% to 6,618.05. Among notable Chinese ADRs, Nio surged 9.3%, Baidu rose 2.5%, and Xiaomi dropped 6.1%. In individual stocks, Taiwan Semiconductor climbed 2.54%, Circle declined 1.43%, PDD Holdings fell roughly 10%, and Snowflake jumped over 30% in after-hours trading.

[European Market] Major European indices saw mostly modest fluctuations

On Wednesday, major European indices experienced mostly minor movements, with mixed performance across national benchmarks. At the close, the pan-European STOXX 600 rose 0.03% to 628.18, while the STOXX 50 gained 0.11% to 6,070.54. Among its components, Adidas rose 5.38%, L'Oréal advanced 4.65%, and both Inditex and LVMH Group gained over 3%.

Germany's DAX 30 slipped 0.03% to 25,177.80; France's CAC 40 rose 0.43% to 8,207.89; the UK's FTSE 100 gained 0.13% to 10,505.01; and Italy's FTSE MIB declined 0.64% to 49,578.67.

[Asian Market] Asian equities generally opened higher but pared gains on Wednesday, with South Korea's index rising over 2%

Asian equities generally opened higher but closed lower, with major regional indices mixed. At the close, the Nikkei 225 rose 0.01% to 64,999.41; South Korea's KOSPI gained 2.25% to 8,228.70; Singapore’s FTSE Straits Times Index fell 0.82% to 5,028.80; and Thailand’s SET Index advanced 1.13% to 1,570.95.

[Hong Kong Market] All three major Hong Kong stock indices closed lower, with the Hang Seng Index and the H-share Index both down more than 1%.

On Wednesday, all three major Hong Kong stock indices closed lower, with the Hang Seng Index and the H-share Index each dropping over 1%. At the close, the Hang Seng Index declined 1.06% to 25,328.23; the Hang Seng Tech Index fell 0.79% to 4,907.57; and the Hang Seng China Enterprises Index dropped 1.33% to 8,463.02. In sector performance, semiconductors remained active due to Huawei’s 'Taoguang Law,' with Eman Technology surging over 91% on its listing debut, ChipSmart Holdings rising 14.20%, and Mejiayin Holdings gaining 10.43%. The AI sector stood out, with DeepSeek Technology up 17.85%, Qunhoo Technology rising 17.09%, and MINIMAX advancing 10.53%. Gold stocks declined amid persistently falling gold prices, with Chifeng Gold down 5.79% and Lingbao Gold falling 5.19%.

[A-Share Market] Mainland China’s A-share market opened higher but closed mixed across the three major indices.

The A-share market opened higher but trended lower throughout the day, leaving the three major indices mixed—Shanghai Composite down over 1%, while ChiNext rebounded in the final session to close slightly higher. At the close, the Shanghai Composite fell 1.25% to 4,093.73; the Shenzhen Component Index declined 0.88% to 15,736.47; and the ChiNext Index edged up 0.07% to 4,045.77. By sector, liquor stocks broadly rose, with Sichuan Shuijingfang hitting its daily trading limit and XD Tuopai Shede surging over 9.5%. Power utilities performed strongly, driven by robust market demand, with Guangdong Electric Power Group, Huadian Liaoning Energy, and Huaneng Mengdian among multiple stocks hitting their daily trading limits. Sectors such as humanoid robots, memory chips, AI applications, and commercial aerospace underperformed.

- Bonds

[U.S. Treasuries] U.S. Treasury yields were stable, with the 10-year yield down 0.39 basis points.

U.S. Treasury yields remained relatively stable, hovering near previous session levels. At the New York close, the 10-year U.S. Treasury yield fell 0.39 basis points to 4.48%; the 2-year yield rose 0.32 basis points to 4.0349%; and the 30-year yield declined 0.71 basis points to 5.0110%.

[Non-U.S. Bond Markets] Sovereign bond yields in major European countries remained largely unchanged from the previous session.

Sovereign bond yields in major European countries stayed broadly around previous session levels. Germany’s 10-year yield rose 0.9 basis points to 2.987%, while its 2-year yield fell 0.4 basis points to 2.585%. The UK’s 10-year yield declined 1.7 basis points to 4.858%. France’s 10-year yield rose 0.9 basis points, Italy’s 10-year yield increased 0.5 basis points, and Spain’s 10-year yield climbed 0.6 basis points.

[China Bond Market] On Wednesday, all China government bond futures rose across the board.

On Wednesday, Treasury futures rose across the board, with the benchmark 10-year contract gaining more than 0.1%. As of the close, the benchmark 30-year Treasury futures contract rose 0.07%, the 10-year rose 0.12%, the 5-year rose 0.07%, and the 2-year rose 0.02%.

– Foreign exchange

[USD] The US dollar edged higher, while the British pound fell 0.45%.

The US dollar strengthened slightly; at the New York close, the ICE U.S. Dollar Index rose 0.02% to 99.193, while the Bloomberg Dollar Spot Index gained 0.08% to 1,202.20.

The US dollar broadly strengthened against major global currencies: USD/JPY rose 0.14% to 159.53 yen; EUR/USD declined 0.03% to $1.1624; GBP/USD dropped 0.13% to $1.3427.

[CNY] The offshore renminbi traded at 6.7790 per US dollar.

At the New York close, the offshore renminbi weakened by 62 pips from the previous session’s close, trading at 6.7790 per US dollar. The onshore renminbi strengthened by 53 pips from the prior session’s close, settling at 6.7817 per US dollar.

[Digital Assets] Bitcoin and Ethereum continued their declines.

On Wednesday, Bitcoin and Ethereum extended their losses, with Bitcoin dropping over 2% below $75,000 and Ethereum falling nearly 0.8%.

– Products

[Energy] Crude oil futures prices fell more than 5%.

Crude oil prices plunged intraday after Iran announced that the U.S. and Iran had reached a memorandum of understanding framework, though the White House later stated Iran’s claim was untrue. At the New York close, U.S. crude futures settled down 5.55% at $88.68 per barrel, while Brent crude futures settled down 5.31% at $94.29 per barrel.

【Precious Metals】Precious and non-ferrous metal prices broadly declined, with spot gold falling below $4,500.

Precious Metals:Gold prices followed a V-shaped trajectory, briefly touching $4,400 before rebounding. At the New York close, spot gold fell 1.18% to $4,455.00 per ounce, while U.S. gold futures dropped 1.11% to $4,448.40 per ounce.

Metals Futures Market:At the New York close, spot silver declined approximately 2.9% to $74.6903 per ounce; U.S. silver futures fell about 2.25% to $74.880 per ounce. U.S. copper futures dropped roughly 1% to $6.3335 per pound. Spot platinum declined 1.9%, and spot palladium fell 0.15%.

[Disclaimer]

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