Markets Wrap July 10: Stocks Climb, Yen Drops, Gold Holds
Tech stocks led gains on chip and AI optimism while the yen slid sharply. Here's everything that moved markets Friday.
Stocks finished the week on a solid note. The S&P 500 added 0.4% and the Nasdaq gained 0.3%, powered by two big catalysts: SK Hynix's US debut sparked fresh excitement around chip demand — the company sees peak demand in 2027 but expects it to stay elevated through 2030 — and Meta surged 6% after Zuckerberg dropped upbeat comments on data center economics following a new AI model release. Small caps didn't follow, though. Russell 2000 slipped 0.5%, a reminder that this rally isn't broad.
The Fed's semi-annual report to Congress flagged "stepped up" inflation in the spring. Combine that with 10-year Treasury yields ticking up 2 basis points to 4.56% and you've got a rate-cut narrative that stays on ice. The dollar strengthened across the board, which squeezed EUR and gave JPY a rough ride — USD/JPY dropped 65 pips intraday but found solid bids around 161.25 on two separate tests. The yen bears aren't done yet, but resistance is building.
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Canada beat jobs estimates hard — +18,200 versus the +10,000 expected — and the loonie caught a quick bid, briefly pushing USD/CAD down to 1.4120. Didn't last. Broad dollar strength dragged the pair back up to 1.4157. Building permits for May also missed badly at -1.7% versus a +2.4% estimate, so the Canadian data picture is mixed at best.
Gold dipped $9 to $4,112 but bounced late in the session to trim losses — not bad given the dollar tailwind. Oil wobbled around $71.57, down about 51 cents, as Iran war headlines kept traders nervous. A weekend meeting between the US, Iran, and mediators could set the tone next week. Refining cracks are drawing more attention as Russian capacity takes hits from Ukraine and Hormuz traffic stays light. The broader market read: Trump won't let anything blow up this stock rally.
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