Rising Stock Markets as Yen Gains Amid Forex Intervention

Global markets witnessed a surge in stock indexes and a fall in bond yields as oil prices decreased. Authorities intervened in forex markets to support the yen, while Iran's tension with the U.S. added geopolitical uncertainty. The Federal Reserve exhibited a hawkish shift, maintaining interest rates.

Global bond yields dipped and major stock indexes climbed on Thursday, influenced by retreating oil prices and a strengthened yen following Japanese foreign exchange interventions.

U.S. crude prices dropped to $104.72 a barrel, while Brent settled at $114.03, easing geopolitical worries as Iran promised retaliation against the U.S. if provoked. The ECB and Bank of England maintained steady rates, whereas the Federal Reserve showed a hawkish shift by holding rates despite divided opinions.

The stock market, buoyed by strong tech earnings, saw the Dow Jones jump significantly, while the S&P 500 and Nasdaq were poised for record monthly gains. The U.S. dollar weakened against the yen with news of Japanese intervention, marking its biggest one-day drop since December 2024.