Nasdaq Extends Record 12-Day Rally, Gold Trades Sideways

Market Overview

U.S. equities closed modestly higher on the previous session, with both the S&P 500 and Nasdaq Composite reaching fresh record highs. The Nasdaq-100 posted a 12-session winning streak, marking its longest rally since July 2017. Technology and software stocks continued to lead the rebound, with Oracle surging over 5%.

However, post-market earnings developments introduced renewed volatility. Netflix fell nearly 9% in after-hours trading following co-founder Reed Hastings announcement that he will step down in June. Meanwhile, Charles Schwab plunged 7.6% amid pressure from its Q1 earnings and deposit data. The steepest decline came from Allbirds, which tumbled 36% in a single session due to restructuring concerns and rumors of asset divestitures.

Technology vs. Consumer Divergence

The software sector remains the primary driver of the rally, with Oracle and Microsoft continuing their upward momentum. In contrast, consumer-related stocks and underperformers faced heavy selling pressure. Allbirds‘ sharp decline highlights the market’s growing intolerance toward non-core or underperforming assets. Despite the Nasdaq‘s record run, Netflix’s after-hours drop signals that high-valuation heavyweights may face intensified scrutiny during earnings season.

Precious Metals & Commodities

Spot gold traded in a narrow range near $4,800, as markets remain caught between geopolitical ceasefire negotiations and persistently strong inflation data. In energy markets, WTI crude oil surged 3.72%, reflecting continued tight supply conditions despite expectations of a potential ceasefire.

Fixed Income & FX Markets

A divergence between equities and bonds has emerged. Despite rising equities, U.S. Treasury yields climbed across the curve amid hawkish rate expectations, with the 10-year yield returning to 4.31%. The U.S. Dollar Index (DXY) gained 0.2%, snapping its previous eight-day losing streak.

Asia Market Dynamics

Asian markets showed strong momentum. Chinas ChiNext Index reached its highest level in nearly 11 years, led by computing power and battery sectors. In Hong Kong, the Hang Seng Tech Index surged 3%, with Baidu jumping over 7% on optimism surrounding its AI business. Capital flows in Asia appear to be accelerating toward AI and advanced technology sectors.

Key Catalysts Ahead

● Potential U.S.–Iran Talks This Weekend

Donald Trump stated that a deal is “very close,” expressing hopes of reaching an agreement during the ceasefire period. He suggested that the deal could grant the U.S. “free oil and unrestricted access through the Strait of Hormuz.” Failure to reach an agreement, however, could lead to renewed conflict. Trump also claimed that the U.S. has obtained a “substantial commitment” ensuring Iran will not develop nuclear weapons for over 20 years. Iran has yet to respond.

● Powell Refuses Early Exit

Amid delays in confirming successor Kevin Warsh, Trump has threatened to remove Jerome Powell after his term expires. Powell, however, has indicated he may remain as an “acting chair,” escalating tensions. Senator Thom Tillis is reportedly leveraging a Department of Justice investigation to block Warshs nomination, further complicating the transition timeline. A forced leadership change could trigger legal disputes and undermine Federal Reserve independence, representing a significantly underestimated market risk.

Key Data to Watch (GMT+8)

• 16:00 (EU) Eurozone Current Account (Feb, Seasonally Adjusted) (EUR billions)

• 17:00 (EU) Eurozone Trade Balance (Feb, Seasonally Adjusted) (EUR billions)

Overnight (US):

• 01:00 (US) Baker Hughes Oil Rig Count (week ending April 17)