Nasdaq Slides, Silver Plunges, Chinese Equities Retreat, Dollar Hits New High

Market Overview

Global markets were dominated by U.S. dollar strength on Tuesday. The U.S. Dollar Index climbed to its highest level in more than a year, while the offshore Chinese yuan weakened by nearly 200 pips intraday, approaching the 6.80 level. Risk assets broadly came under pressure as a result.

U.S. equities were led lower by technology stocks. The Nasdaq Composite closed at 25,587, down 2.22%, while the S&P 500 fell 1.44% and the Dow Jones Industrial Average slipped just 0.09%.

The stronger dollar weighed heavily on the metals complex. Silver plunged 5.35% in a single session to $62.02 per ounce, gold declined 1.24%, and COMEX copper dropped 3.39%.

Chinese equities also retreated on elevated trading volume. The Shanghai Composite fell 1.37% to 4,106, the Shenzhen Component Index lost 3.17%, and the ChiNext Index dropped 3.84%.

Meanwhile, progress in U.S.-Iran nuclear negotiations provided some relief to geopolitical tensions. Iran reportedly made concessions on inspection requirements, approximately $12 billion in frozen funds is expected to be released, and the United States granted a 60-day waiver on certain oil-related sanctions.

The semiconductor sector also showed signs of cooling. Market reports indicated lower-than-expected production forecasts for NVIDIA's Rubin platform, while SK Hynix has reportedly slowed the pace of HBM4 capacity expansion.

Key Themes to WatchMicron Earnings and Memory Market Sentiment

Micron is scheduled to release earnings today, with investors closely watching guidance on HBM pricing and the outlook for the memory industry.

Combined with reports of reduced Rubin production expectations from NVIDIA and slower HBM4 expansion plans at SK Hynix, sentiment across the memory and AI infrastructure supply chain has turned more cautious in the near term. Management guidance could become a critical catalyst for determining the sector's next direction.

Spillover Effects from Dollar Strength

With the U.S. Dollar Index reaching a fresh one-year high, the offshore yuan and several emerging-market currencies remain under pressure.

Investors should continue monitoring the impact of dollar strength on precious metals and commodity markets, as further appreciation could extend downward pressure across the asset class.

In addition, the Federal Reserve's annual bank stress test results are set to be released soon, an event that could influence financial stocks and broader market risk sentiment.

Key Events to Watch

• U.S. May New Home Sales Data

• Federal Reserve Annual Bank Stress Test Results

• NVIDIA Annual Shareholders Meeting, with investors focused on forward guidance

• Micron Earnings Report, providing insight into memory market conditions

• Opening of MWC Shanghai 2026 (Mobile World Congress Shanghai 2026)