U.S. and European stock markets closed lower on May 5, Beijing time. The Euro Stoxx 50 index dropped more than 2%, while Germany and France both declined over 1%. All three major U.S. stock indices experienced significant losses, with the Dow Jones Industrial Average falling more than 557 points, a decline exceeding 1%. The S&P 500 index dropped over 0.4%, and the Nasdaq Composite decreased nearly 0.2%.
Most technology stocks declined, with Advanced Micro Devices (AMD) falling over 5% and Apple dropping more than 1%. Semiconductor stocks broadly weakened, with AMD and Qualcomm both down approximately 5%, Intel (INTC) declining nearly 4%, ARM falling more than 3%, and ASML decreasing over 2%. On the positive side, Micron Technology and SanDisk both rose around 6%, reaching new all-time highs.
Chinese concept stocks showed mixed performance. Pony.ai advanced over 5%, Daqo New Energy gained more than 4%, and Nio increased over 3%. Ke Holdings and iQiyi both rose more than 2%. Conversely, Canadian Solar dropped over 5%, Huazhu Group fell more than 3%, while TAL Education Group and Yum China both declined approximately 2%.
U.S. Treasury bonds declined, with 10-year Treasury futures rising 5 basis points. Thirty-year Treasury futures increased 8 basis points, pushing yields to their highest levels since July of last year.
In commodities, international oil prices surged significantly. WTI crude oil rose 4.4%, while Brent crude jumped 5.8%.
Gold and silver prices fell across the board. Spot gold declined 2%, with COMEX gold breaking below $4,600, down 2.5%. Spot silver dropped over 3%, and COMEX silver futures fell more than 4%.
In cryptocurrency markets, Bitcoin climbed above $80,000, rising 1.2% over the past 24 hours as of 6:40 a.m. Beijing time. Ethereum increased 0.7%. Over 122,000 positions were liquidated globally in the cryptocurrency market.
Geopolitical tensions in the Middle East escalated further. According to reports, the Fujairah oil industrial zone in the UAE caught fire following a drone attack attributed to Iran. The UAE Ministry of Defense announced on the 4th that its air defense systems successfully intercepted 12 ballistic missiles, 3 cruise missiles, and 4 drones originating from Iranian territory. The ministry emphasized that UAE armed forces remain at the highest level of alert and readiness.
An Iranian military official stated that Iran had no premeditated plan to attack oil facilities in Fujairah port, attributing the incident to provocative actions by the U.S. military. The official claimed U.S. forces attempted to create an illegal passage for vessels through prohibited shipping lanes in the Strait of Hormuz and must bear responsibility.
Due to escalating tensions in the Gulf region, Israel raised its alert level on May 4 local time.
In a recent interview, former U.S. President Donald Trump declined to clarify whether the ceasefire agreement between the U.S. and Iran remains valid. Trump also mentioned that the U.S. is obtaining "hundreds of millions of barrels of oil" from Venezuela, stating that relations with Venezuela are currently "good" and that major energy companies have begun entering the country to develop resources.
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