Indices:- Nasdaq 100 futures climb following Micron’s earnings and forecasts (see Stocks below) and follows a mixed session where gains in the Dow 30 (+0.4% to 51,848) contrasted with modest declines for the S&P 500 (-0.1% to 7,358) and tech-heavy Nasdaq 100 (-0.4% to 29,220); Treasury yields moved lower as oil prices fell again, with the 10-year yield distancing itself from the notable 4.5%; market pricing (CME’s FedWatch) reducing rate hike likelihoods but still see (via majority) a Fed interest rate increase in September but now a minority on a second hike in DecemberStocks:- Shares of Nvidia (-0.5%) closed lower and the same held true for most of the semiconductor sphere before gaining in extended trading with Qualcomm (NASDAQ:QCOM) (+12.7% AH) surging after raising its fiscal 2029 non-handset revenue target to $40 billion from $22 billion previously, another clear positive factor earnings from memory maker Micron (-0.3%), whose shares exploded 15.7% higher in after-hours trading after crushing expectations on both earnings and revenue while issuing well-above-consensus guidance, and aiding its memory peers in easily reversing the losses suffered by the close- Microsoft (NASDAQ:MSFT) (-2.3%) shares closed lower and so too other key software infrastructure names like Palantir (NASDAQ:PLTR) (-2.7%) and more so Oracle (NYSE:ORCL) (-4.7%) yet to recover since it announced massive layoffs- Nasty session for shares of Rheinmetall (-18.7%) suffering one of its worst days in decades on a report Germany will no longer build the F126 frigates opting for eight smaller Meko A-200 frigates from TKMS (+16.1%) instead- Energy stocks retreated as oil prices continued to drop with added attention on Exxon Mobil (-2%) and Chevron (-2.6%) who President Trump said were among companies being probed for gasoline price gouging - Travel stocks benefited from the pullback in crude prices, with Expedia Group (+7%), Booking Holdings (+7.3%), United Airlines (+7.4%), Royal Caribbean (+3.7%), and Delta Air Lines (+4.5%) all advancing- Meme stock movers: Kohl’s (+8%), Krispy Kreme (+8.1%), AMC (-3.4%), BlackBerry (-2.3%), Avis (-8%), Wendy’s (+25.7%) surged after becoming one of the most discussed names on Reddit and its WallStreetBets forum, with traders targeting the stock’s elevated short interest- Crypto stocks tracked cryptocurrencies lower: Coinbase (-5.1%), MicroStrategy (-9.4%), Mara Holdings (-4.8%), Gemini Space Station (-5.6%), Bullish (-5.9%), Circle Internet Group (-6.2%)Commodities:- Gold broke beneath a key support level hovers beneath $4,000 reaching its lowest since late 2025, as a stronger dollar and ongoing significant Fed rate hike expectations weighed heavily on the precious metal even as yields fell back notably; silver suffered an even larger percentage drop yesterday, getting as low as the $55s before partially recovering to $57 and pushing the gold/silver ratio to as high as 71 at one point, with both metals remaining under pressure ahead of the PCE inflation data release- Oil prices (WTI) suffer another consecutive drop briefly breaking beneath $69 as concerns over Middle East supply disruptions continued to ease even if tanker traffic through the Strait of Hormuz hasn’t fully normalized yet and conflicting comments regarding the agreement persist; EIA’s weekly energy inventory estimates show another sizable draw for oil (-6.1m barrels) but builds in gasoline (+2.1m) and distillates (+3.1m); Brent’s prompt shifts to contango for the first time since the conflict beganFX/Central Banks/Crypto:- Bitcoin falls back to $60K reaching its lowest level since October 2024 as the crypto bear market persists, and fails to rise even when tech sees strength, with flight to liquidity, ETF outflows, a stronger dollar, and expectations for higher interest rates all negative factors; Ether back above $1.6K after briefly falling beneath it as it generally underperforms keeping the Ethereum/Bitcoin ratio in the 0.026s- US Dollar Index well into the 101 handle and reaching a long-term resistance level last seen 13 months ago, with traders on the FX front also noting USD/JPY at one point not far off 162 wondering whether intervention will occur any time soon- European Central Bank’s Schnabel that more hiking is needed to return inflation to 2%, that rates are not yet restrictive, and that the ceasefire does not lessen the need for vigilance against inflation risks- Bank of Japan’s Governor Ueda reiterates the central bank’s readiness to continue normalizing policy as underlying inflation approaches targetCapital.com Client Sentiment:- Indices: Gains in the futures market helps long bias unwind a bit in the S&P 500 (from 72% yesterday to 70% and still in heavy buy territory), Nasdaq 100 (at 62% from 69% and no longer in heavy long territory) and Russell 2000 (58% from 61%); elsewhere pullback in the DAX 40 saw sentiment enter heavy buy (67% from 63%), while fall out of it in the Nikkei 225 (63% from 74%) as the lift off Tuesday’s lows saw a significant drop in long sentiment- Commodities: Remain near extreme buy territory in gold (76% from 77% yesterday) following the slide and within it in silver (87% from 88%) little changed, while push further into heavy buy territory in WTI (69% from 67%)- FX: Fall out of heavy buy territory in EUR/USD (63% from 67%) as longs get squeezed, only just within it in GBP/USD (65% from 69%) following a similar pattern, and continue to hold in heavy sell territory in USD/JPY (69%) waiting for policymaker interventionData:- U.S. new home sales in May at 580K well below the 638K forecast; weekly mortgage applications (MBA) rise 1% following a 3.8% decline prior- German Ifo’s business climate for June at 85.6 matching forecasts, current assessment improves from 86.1 to 87, and so too business expectations to 84.1 from 83.9 even if the latter was lighter than anticipated- Australian unemployment rate falls to 4.4% in May, employment change 40.3K (full-time 5.2K, part-time 32.2K)Today:- U.S. PCE price index, GDP, unemployment claims, durable goods orders, and personal income and spending (all at 4:30pm Dubai time), FOMC members speak- In Europe, GfK’s consumer confidence (10 am), ECB’s economic bulletin (12 pm)