Dollar Falls, Yen Jumps as Nasdaq Gains 1.3% on Fed and Iran Relief
Updated
Updated · Investing.com · Jul 10
Dollar Falls, Yen Jumps as Nasdaq Gains 1.3% on Fed and Iran Relief
3 articles · Updated · Investing.com · Jul 10
Summary
Fed rate-hike bets eased sharply after dovish minutes and John Williams’ comments, pulling Treasury yields and the dollar lower as traders cut September hike odds to 68% from 80%.
Oil slid about 5% after Trump said Iran wants to “make a deal so badly,” easing fears of a renewed inflation shock from any Strait of Hormuz disruption.
The yen led major currency gains, with dollar/yen dropping below 162, after reports Japan may steer its giant pension fund toward domestic assets and producer inflation strengthened the case for a 25-basis-point BoJ hike by January.
Wall Street also firmed on the softer-rate outlook and calmer Iran headlines, with the Nasdaq up 1.30% and the Philadelphia Semiconductor Index rising about 3% for a second straight day.
Next week’s U.S. June CPI is now the main test for whether the dollar stays under pressure or Fed tightening expectations revive.
Why is the AI-fueled stock market booming while rising gas prices squeeze consumers and major brands like PepsiCo?
Can new frontiers like space-based manufacturing secure a definitive technological advantage for America in its 'chip war' with China?
As chip giants invest billions to dominate AI, is the industry heading for a massive supply glut and an inevitable market crash?
Ceasefire Collapse: U.S.-Iran Conflict Sends Dow Down 576 Points, Oil Up 5%, and Sparks Global Economic Turmoil
Overview
On July 8, 2026, the U.S.-Iran ceasefire collapsed, immediately triggering significant volatility in global financial markets. Investor sentiment quickly turned negative, leading to broad declines in major stock indices like the Dow Jones and S&P 500, while the Nasdaq managed a slight gain. Energy markets reacted sharply, with crude oil prices surging due to fears of disrupted supply. This spike in oil prices fueled inflation concerns and affected currency markets, especially for countries reliant on energy imports. The sudden escalation highlighted the deep connection between geopolitical tensions and economic stability, forcing investors and policymakers to reassess risks and strategies.