Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
U.S. stocks closed higher on Wednesday, with the Dow Jones Industrial Average and the S&P 500 finishing at record closing highs during a broad-based rally in a holiday-shortened trading session. All three major indexes notched their fifth consecutive day of gains, highlighting continued strength in U.S. equities despite lingering concerns about interest rates and valuations.
Market sentiment has improved in recent sessions, supported in part by a rebound in AI-related stocks after last week’s selloff. That pullback had been driven by worries over elevated valuations and heavy capital expenditures potentially weighing on future profits. Renewed optimism around artificial intelligence, including chatter about new models from major tech players such as OpenAI and Meta, helped lift investor confidence.
Recent economic data also reinforced the view that the U.S. economy remains resilient. New applications for U.S. jobless benefits unexpectedly declined last week, signaling ongoing labor market strength. Meanwhile, investors continue to price in around 50 basis points of Federal Reserve rate cuts next year, although expectations for a January cut remain low, according to CME Group’s FedWatch Tool. Analysts broadly agree that the Fed is unlikely to ease policy again in the near term.
The Dow Jones Industrial Average rose 288.75 points, or 0.60%, to 48,731.16. The S&P 500 gained 22.26 points, or 0.32%, to 6,932.05, while the Nasdaq Composite added 51.46 points, or 0.22%, to 23,613.31. Trading volumes were notably light ahead of the Christmas holiday, with U.S. markets closed on Thursday.
Micron Technology shares climbed nearly 4% to a record close, extending gains after issuing a strong forecast last week. Financial stocks also supported the rally, while energy was the only S&P 500 sector to finish lower. Nike surged after news of insider buying, while Dynavax Technologies jumped sharply following a takeover announcement by Sanofi.
With stocks entering the traditionally strong “Santa Claus rally” period, optimism around AI, potential rate cuts, and economic resilience continues to underpin the bull market, which began in October 2022 and has kept U.S. stock indexes on track for another year of gains.
