Supreme Court decision to block Trump from removing Fed’s Lisa Cook triggers gold selloff while equities surge and USD/JPY nears 162.00.
US equities closed sharply higher, with the S&P 500 gaining 1.3% and the Nasdaq up 2.0%, led by Tesla, Alphabet, and Amazon. The rally followed a Supreme Court ruling that prevented the removal of Federal Reserve Governor Lisa Cook, sparking a brief selloff in gold, which fell $72 to $4014 per ounce.
The yen slumped to a 40-year low against the dollar, with USD/JPY nearing 162.00, despite intervention warnings. GBP outperformed, while WTI crude rose $1.31 to $70.54. US 10-year yields held steady at 4.37%. Economic data was light, but the Fed ruling dominated market sentiment.
Chip stocks saw volatility amid a raid on SMCI offices in Taiwan over alleged chip smuggling, though the sector ultimately closed higher. The US strategic petroleum reserve hit its lowest level since 1983, adding to energy market concerns.