U.S. stocks closed sharply higher on Thursday, with the Dow Jones Industrial Average surging roughly 500 points, while long-dated Treasury yields continued to push upward. Despite the strong daily performance, all three major indexes finished the week in negative territory.
Most Chinese stocks trading in New York advanced, with NetEase jumping 6.98% and Alibaba falling 8.57%. Among the top 20 most active stocks on U.S. exchanges, Moderna closed up 8.86% after a breakthrough in its mRNA cancer vaccine trial lifted the entire healthcare sector.
In commodities, oil prices posted a weekly gain, zinc prices moved higher, and gold saw a significant rally. European markets recorded their biggest advance since the start of the month as traders paused for fresh catalysts.
Macro Headlines
Former President Trump said his shift to an "economic war" against Iran does not limit U.S. military options. He also stated that the decision to intervene in the bond market was Treasury Secretary nominee Scott Bessent's own initiative, not his direction. Trump added that the U.S. is beginning a "new agreement" with Mexico and introduced new tariff relief measures aimed at lowering ground beef prices.
The Supreme Court temporarily allowed the White House banquet hall project to proceed. The U.S. will pay $725 million in overdue dues to the United Nations. Trade talks between the U.S. and Canada are entering the final stretch as Trump's 50% tariff deadline approaches. The State Department approved a $125 million sale of Sidewinder missiles to South Korea.
Iranian officials said the U.S. has proven it "does not understand the language of diplomacy." Oman's foreign minister held talks with his Iranian counterpart regarding shipping through the Strait of Hormuz. Iran's foreign minister called America's economic pressure campaign "doomed to fail," while another Iranian official vowed to deliver a "historic lesson" to enemies at sea.
Palestinian President Mahmoud Abbas called on Israel to halt and cancel the tender for settlement construction in the "E1 zone." Japan's new fiscal year budget request could exceed 130 trillion yen. Ukraine's energy minister said preparations for winter energy needs are nearly complete or have exceeded planned targets.
Corporate Developments
Anthropic has hired the founder of Google's custom chip project as it prepares to develop its own semiconductors. Apple is cutting positions in its Siri and Vision Pro teams, reallocating resources toward AI and new devices. Nvidia will pay $6 billion to license AI models from Poolside AI and plans to absorb its employees. AI cloud provider Nscale is reportedly planning a U.S. IPO that could raise up to $3 billion.
Ross Stores raised its full-year earnings guidance to between $8.61 and $8.77 per share, with second-quarter same-store sales up 10%. Sources say Broadcom's debt transaction could reach up to $70 billion. Castle Investment said it has sold over $4 billion of positions purchased from Situational Awareness, resolving more than 80% of its risk exposure.
Market Commentary
Bitcoin surged 22% this week, liquidating $2.7 billion in short positions. U.S. Treasuries fell across the curve, with short-term yields leading the decline. Allspring's investment chief said the Jackson Hole symposium poses a greater market risk than Nvidia's earnings report. Bridgewater founder Ray Dalio warned of a "three-year itch" for U.S. debt, suggesting hard currencies become the preferred safe haven.
European bond markets stabilized and outperformed U.S. Treasuries, with a slight "bull steepening" of the yield curve. Goldman Sachs noted that demand for gold call options has surged, potentially amplifying price swings in both directions. Gold climbed to a three-month high as the "devaluation trade" that drove prices higher last year makes a full comeback.
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