Commodities Diverge: Oil Weakens, Gold Gains

Market Overview

U.S. equities closed higher on Wednesday, led by gains in major tech stocks. The Nasdaq Composite rose nearly 1%, while the S&P 500 added 0.61%. Chip giant NVIDIA stood out, with its market cap briefly surpassing $4 trillion during the session before closing up 1.8%, leading the “Magnificent Seven.”

In fixed income, U.S. Treasury prices rebounded as a strong government bond auction pushed the 10-year yield down by nearly 7 basis points, erasing all gains made earlier this week.

In the commodities market, gold staged a notable recovery, bouncing nearly 1% from its intraday low. Crude oil prices, however, saw heavy selling after testing Tuesdays highs, as inventory data showed the largest build since January. Oil ultimately ended flat on the day.

Hot Topics to Watch

● June FOMC Meeting Minutes

The minutes from the June 17–18 FOMC meeting revealed diverging views on tariffs impact. While some members believed tariffs would cause only a one-off price rise without affecting long-term inflation expectations, the majority saw a more persistent inflationary effect. Policymakers acknowledged “considerable uncertainty” around the timing, magnitude, and persistence of tariff-related inflation, citing the complexity of transmission channels and potential trade negotiation outcomes.

● NVIDIA Hits $4 Trillion Market Cap Intraday

During Wednesday‘s early trading hours (July 9, ET), NVIDIA’s stock surged to an all-time intraday high of $164.42, posting a 2.8% gain and briefly pushing its market capitalization past the $4 trillion mark.

NVIDIA now accounts for 7.5% of the S&P 500 Index, nearing the highest influence level ever recorded. Despite the surge, its forward P/E ratio is approximately 33x—below its 10-year average—suggesting potential for further upside.

Key Focus (GMT+8)

20:30 US – Initial Jobless Claims for the week ending July 5 (in thousands)