Global Markets Gold Agenda: Ups and Downs

Notable Developments in Global Markets

Wall Street indices have experienced a pause after recent strong rallies. The rally, bolstered by optimism surrounding artificial intelligence, has led to an approximate $16 trillion increase from the low levels of the S&P 500 index in April. However, a need for a breather emerged after the excessive rise.

Fluctuations in the Technology Sector

A report indicating that Oracle Corp.'s cloud computing margins fell below expectations has caused major tech companies to pull the S&P 500 down. Shares of Oracle fell by 2.5%, while Tesla Inc. saw a decline of over 4% following the release of new versions of its best-selling models. As a result, the S&P 500 closed at around 6,715 points, down by 0.4%. The Nasdaq 100 also dropped by 0.6%.

Expert Opinions

UBS Global Wealth Management analyst Ulrike Hoffmann-Burchardi stated, "There is likely to be a consolidation period following the strong rally; however, we believe the stock rally is based on healthy fundamentals." On the other hand, Citigroup analyst Chris Montagu commented, "The increasing trend of profit-taking during this period raises risks, especially for the Nasdaq, and could hinder further gains."

Fed Announcements and Bond Market

Investors continue to closely watch statements from Fed officials. Governor Stephen Miran, appointed by Trump, predicted that the impact of tariffs on inflation would be limited and that the Fed could maintain its loose monetary policy. Minneapolis Fed President Neel Kashkari warned that a sharp decline in interest rates could increase prices. U.S. bonds rose following strong demand for a $58 billion bond sale, and the 10-year Treasury yield decreased to 4.12%.

Effects in the Asian Market

The Bloomberg Dollar Index rose by 0.2%, continuing its increase for the third day. As of 07:52 AM TRT, futures indices in the U.S. showed slight gains, while European markets appeared flat. High valuations and caution regarding AI spending have led to a decline in U.S. stocks from record levels, while a wave of selling in the technology sector affected Asia. The MSCI regional equity index fell by 0.6% amidst losses from major companies like Alibaba Group Holding Ltd. and Baidu Inc.; stocks in Hong Kong dropped by 1%.

Pressures on New Zealand and Japanese Currencies

With the Reserve Bank of New Zealand cutting interest rates, the New Zealand dollar has depreciated. The Japanese Yen continued to lose ground for the fifth consecutive day, falling to its lowest levels against the dollar since February.