Equity benchmarks printed fresh records on Wall Street as a soft labor-market print revived hopes for a dovish pivot, even as digital assets extended a brutal weekly rout that has now erased roughly $280 billion from the global crypto market capitalization.
The Dow Jones Industrial Average surged 875 points, or roughly 1.7%, to settle at a record peak, while the S&P 500 advanced about 1.1% to a fresh all-time high. The Nasdaq Composite lagged, slipping into the close as semiconductor heavyweights reversed early gains following a tepid guidance update from Broadcom. The Russell 2000 outperformed, adding 1.6% as small-cap rate-sensitivity continued to attract flows.
Sector breadth was healthy, with cyclicals, financials, and consumer discretionary names leading the advance. The move came despite a hotter-than-expected wholesale inflation print, as traders focused on a rising probability of rate cuts later this year if labor demand softens further.
Bonds: Yields Slip on Dovish Repricing
The 10-year Treasury yield slipped four basis points to around 4.18%, while the 2-year note yield eased to roughly 3.92%. The curve steepened modestly as front-end futures priced in a higher likelihood of a third 25-basis-point cut by year-end. Investment-grade corporate spreads tightened by three basis points, and high-yield indices continued to grind tighter on improved risk appetite.
Bund yields held near multi-week lows, and Japanese government bond yields drifted lower as the yen recovered ground against the dollar in late New York trade.
Currencies: Dollar Gives Back Gains
The U.S. dollar index retreated 0.4% to 99.85, giving back a portion of its recent safe-haven bid. The euro firmed to $1.0920, while the pound held near $1.2780. The dollar-yen pair slipped below 151.00 as Tokyo officials reiterated warnings against excessive currency volatility. Emerging-market currencies broadly strengthened, with the Mexican peso and Brazilian real leading regional gains.
Commodities: Oil Steady, Gold Holds Bid
Crude oil futures were little changed, with WTI trading near $63.85 a barrel and Brent hovering around $67.20 as traders weighed mixed demand signals against a fragile Middle East ceasefire. Gold consolidated recent gains around $3,388 an ounce, supported by a softer dollar and steady central-bank buying. Copper edged higher on improving Chinese physical demand, while wheat and corn futures slipped on favorable U.S. planting weather.
Crypto: $1.76 Billion Liquidation Wave Caps Brutal Week
Digital assets remained under heavy pressure. Bitcoin tested the $61,500 level overnight before rebounding toward $63,400, still down more than 22% on the month and over 50% below its October 2025 all-time high. Ethereum slid to $1,768, XRP hit a 15-week low near $1.17, and Solana dropped to roughly $68, leading losses among major altcoins.
Leveraged liquidations accelerated the move, with more than $1.76 billion in derivatives positions wiped out in 24 hours, including $1.50 billion from forced long liquidations. U.S. spot Bitcoin ETFs extended their record outflow streak to 13 consecutive trading days, with BlackRock’s IBIT alone shedding $342 million on the session. Total crypto market capitalization has now fallen from $2.53 trillion to $2.25 trillion in just one week.
The structural bid that had supported Bitcoin through every previous selloff is now selling instead of buying, and high-beta names are amplifying the move on the way down.
Markets are now pricing a near-70% probability of zero Fed rate cuts in 2026, a setup that has weighed disproportionately on risk assets while traditional equity benchmarks continue to ride strong earnings momentum and easing financial conditions. Investors will look to next week’s consumer price data and several Federal Reserve appearances for fresh direction across both asset classes.
Written by James Wright, Economy Correspondent
