On Wednesday local time, the Federal Reserve kept its benchmark interest rate unchanged, but the dot plot suggested that rates would rise later this year. Meanwhile, the presidents of the United States and Iran reportedly signed a memorandum of understanding online.
The U.S. Dollar Index surged strongly, breaking above the 100 mark, and ultimately closed up 0.84% at 100.37; the benchmark 10-year U.S. Treasury yield closed at 4.491%, while the 2-year U.S. Treasury yield—which is sensitive to the Fed’s policy rate—closed at 4.197%.
Spot gold plunged following the release of the Fed’s interest rate decision, hitting a low of $4,218.99 per ounce. It ultimately closed down 1.7% at $4,257.78 per ounce, erasing all of its weekly gains and ending its four-day winning streak;Spot silver fell below the $68 mark, ultimately closing down 3% at $67.91 per ounce.
International crude oil extended its decline, experiencing sharp intraday volatility amid geopolitical developments in the Middle East.As Israel launched another strike on southern Lebanon and Trump threatened to resume bombing Iran if he was dissatisfied with the agreement, WTI crude briefly turned positive during the session but retreated after reports that the U.S. and Iran had signed an agreement, ultimately closing down 1.22% at $75.72 per barrel;Brent crude ultimately closed down 0.9% at $78.52 per barrel.
The three major U.S. stock indices all closed lower: the Dow Jones Industrial Average fell 0.97%, the S&P 500 dropped 1.2%, and the Nasdaq Composite declined 1.3%.SpaceX (SPCX.O) closed down 5%, Nvidia (NVDA.O) fell 1%, and Western Digital (WDC.O) rose 4%. The Nasdaq China Golden Dragon Index closed down 1.1%, with Li Auto (LI.O) falling 3%.