Lower-than-expected PCE inflation spurs Treasury yield declines, lifting equities and precious metals while pressuring the dollar.
U.S. Treasury yields fell after personal consumption expenditures inflation data came in slightly below forecasts. The 2-year yield dropped 3 basis points to 4.106%, while the 10-year yield declined 2.5 basis points to 4.374%. The softer inflation print eased concerns over persistent price pressures, supporting risk assets.
Stocks surged, led by technology shares, after Micron Technology reported stronger-than-expected earnings, driving its stock up nearly 18%. The Nasdaq gained 676 points, the S&P 500 rose 64 points, and the Dow Jones Industrial Average climbed 251 points. Meanwhile, WTI crude oil futures slipped $0.56 to $69.78.
Precious metals rallied as yields declined, with gold rising $35 to $4,027 and silver jumping $1.40 to $58.87. The dollar weakened, with EURUSD briefly climbing above 1.1356 before retreating, while USDJPY hovered near 161.83, close to its 2024 high.