Weak demand in the U.S. Treasury auction led to a collapse in U.S. stocks, with the Dow Jones Industrial Average falling nearly 2%. XPeng surged 13%, while Bitcoin hit a record high during the session, and gold rose over 1%

The results of the 20-year U.S. Treasury auction were poor, leading to a surge in long-term U.S. Treasury yields, which dragged down U.S. stocks. Risk aversion increased, and gold prices rose. XPeng's stock price soared due to impressive quarterly reports and guidance. Progress made in U.S. stablecoin legislation, Bitcoin briefly broke its historical high during trading.

The surge in U.S. Treasury yields triggered widespread selling in U.S. stocks, with the three major U.S. stock indices recording their largest decline in a month:

• In the early U.S. stock market, Trump stated that the tax cut plan is close to being finalized, and investors are concerned that the massive tax cut bill will increase the budget deficit, causing the three major U.S. indices to open lower. Most sectors fell, with healthcare being hit the hardest.

• At midday in the U.S. stock market, the U.S. 20-year Treasury auction was dismal, with the winning yield surpassing 5%, marking one of the worst performances since the maturity was introduced five years ago. After the auction results were released, the declines in the three major U.S. indices widened, the 10-year Treasury yield rose by over 10 basis points, the dollar index fell to a two-week low, Bitcoin, which was close to hitting a historical high of $110,000, briefly dropped by over $3,000, gold rose by over 1%, and crude oil fell by over 1%.

• After hours in the U.S. stock market, Navitas announced a partnership with NVIDIA to develop an 800V power architecture, and Navitas's stock price surged after hours, rising by over 200%.

On Wednesday, the three major U.S. stock indices recorded their largest decline in a month, with the Dow Jones falling nearly 2%. Among the seven tech giants, only Google rose, with an increase of nearly 3%. Retail giant Target's stock fell over 5% after announcing its earnings. Navitas's announcement of a partnership with NVIDIA for the next-generation 800V power architecture led to a 200% surge after hours. Chinese concept stock Baidu fell over 4% after its earnings report, while XPeng's stock price soared over 12% due to its impressive first-quarter earnings and expectations of profitability in the fourth quarter.

Three major U.S. stock indices:

• The S&P 500 index closed down 95.85 points, a decline of 1.61%, at 5844.61 points.

• The Dow Jones Industrial Average closed down 816.80 points, a decline of 1.91%, at 41860.44 points.

• The Nasdaq closed down 270.07 points, a decline of 1.41%, at 18872.64 points. The Nasdaq 100 index closed down 287.02 points, a decline of 1.34%, at 21080.36 points.

• The Russell 2000 index closed down 2.80%, at 2046.56 points.

• The VIX (Volatility Index) closed up 15.42%, at 20.88

U.S. Stock Industry ETFs Decline Across the Board:

• Regional Bank ETF fell 3.54%, Bank ETF dropped 3.52%, Global Airline ETF decreased 3.06%, Biotechnology Index ETF, Healthcare ETF, Financial ETF, and Consumer Discretionary ETF fell by up to 2.39%.

"Tech Seven Sisters":

• The index of the seven tech giants in the U.S. (Magnificent 7) closed down 1.17% at 158.79 points.

• Tesla fell 2.68%, Apple dropped 2.31%, NVIDIA decreased 1.92%, Amazon fell 1.45%, Microsoft dropped 1.22%, Meta Platforms fell 0.25%, while Alphabet - C rose 2.79%.

Chip Stocks:

• Philadelphia Semiconductor Index closed down 0.14% at 4890.78 points.

• AMD fell 1.28%, TSMC ADR dropped 0.87%.

AI Concept Stocks:

• Tempus AI fell 6.87%, Palantir dropped nearly 4%, Applovin closed down 1.30%.

Chinese Concept Stocks:

• Nasdaq Golden Dragon China Index closed down 0.72% at 7277.42 points.

• Popular Chinese concept stocks Baidu initially fell 4.2%, Pony.ai dropped 3.6%, Yum China and Fangdd fell by up to 2.9%. Li Auto rose 3.2%, XPeng increased 12.6%, and WeRide rose 21.3%.

Other Individual Stocks:

• Berkshire Hathaway Class B shares under Buffett fell 0.34%, Eli Lilly closed down 2.95%.

• Nanwei surged nearly 200% after hours, officially announcing a partnership with NVIDIA to develop the next generation of 800V power architecture.

EU Prepares Trade Proposal to Inject Momentum into EU-U.S. Trade Negotiations. German Stock Index Hits Closing Historical High for Five Consecutive Days.

Pan-European Stocks:

• The European STOXX 600 Index closed down 0.04% at 553.82 points.

• The Eurozone STOXX 50 Index was roughly flat, closing at 5454.46 points.

National Stock Indices:

• The German DAX 30 Index closed up 0.36% at 24122.40 points, marking the fifth consecutive trading day of closing historical highs

• The French CAC 40 index closed down 0.40%, at 7910.49 points.

• The UK FTSE 100 index closed up 0.06%, at 8786.46 points.

Sectors and Stocks:

• Among the blue-chip stocks in the Eurozone, Kering Group fell 2.54%, LVMH Group dropped 2.23%, and Hermès declined 2.12%, ranking third from the bottom.

• Among all constituents of the European STOXX 600 index, JD Sports Fashion fell 10.6%, Next dropped 6.77%, and Wendel Group declined 6.2%.

The U.S. 20-Year Treasury Auction Disappoints, with the winning yield surpassing 5%, marking one of the worst performances since the maturity was introduced five years ago. Following the auction results, the yield on the U.S. 10-Year Treasury note rose by 10 basis points.

U.S. Treasuries:

• At the New York close, the yield on the benchmark 10-Year U.S. Treasury rose by 11.16 basis points to 4.5985%, as the U.S. Treasury Department released the results of the 20-Year Treasury auction, initiating a brief significant rally, marking the first time since February 13 that it broke through the 4.6% level.

• The yield on the 20-Year U.S. Treasury rose by 13.21 basis points, reaching a daily high of 5.1247%, which Bloomberg data indicates is the highest since the U.S. Treasury resumed supply in 2020.

European Bonds:

• At the European close, the yield on the German 10-Year Treasury rose by 4.0 basis points to 2.646%, trading within the range of 2.618%-2.671% during the day.

• The yield on the UK 10-Year Treasury rose by 5.4 basis points, the 2-Year UK Treasury yield rose by 4.0 basis points, the 30-Year UK Treasury yield rose by 3.4 basis points, and the 50-Year UK Treasury yield rose by 5.7 basis points.

• The yields on the 10-Year Treasuries of France, Italy, and Spain all rose by more than 4 basis points, while the yield on the 10-Year Greek Treasury rose by 2.2 basis points.

The results of the 20-Year U.S. Treasury auction impacted investor confidence, causing the U.S. dollar index to retreat to near its lowest point since the beginning of the year, dropping over 0.5%, while Bitcoin futures briefly surged to $110,000 before retreating after the auction results.

U.S. Dollar:

• At the New York close, the ICE U.S. Dollar Index fell by 0.55% to 99.569 points, remaining in a downward trend throughout the day, and hitting a daily low of 99.336 points at 01:27 Beijing time

• The Bloomberg Dollar Index fell 0.40%, closing at 1217.79 points, having refreshed the daily low to 1215.69 points at 01:27.

Non-U.S. Currencies:

• At the New York close, the euro rose 0.4% against the dollar, closing at 1.1331.

• The pound rose 0.2% against the dollar, closing at 1.3415.

• The dollar fell 0.39% against the Swiss franc, closing at 0.8258.

Yen:

• At the New York close, the dollar fell 0.53% against the yen, closing at 143.64 yen.

Offshore Renminbi:

• At the New York close, the offshore renminbi was quoted at 7.2041 against the dollar, up 111 points from Tuesday's New York close, trading overall in the range of 7.2198-7.1991.

Cryptocurrency:

• At the New York close, the CME Bitcoin futures main contract rose 1.07% from Tuesday's New York close, closing at $109,000.

• The CME Ether futures main contract rose 0.12%, closing at $2,514.

The U.S. Energy Information Administration reported an unexpected increase of 1.33 million barrels in U.S. EIA crude oil inventories last week, while analysts had previously expected a decrease of 741,600 barrels. U.S. crude oil futures closed down more than 0.7%, and New York natural gas fell more than 1.7%.

Crude Oil:

• WTI July crude oil futures closed down $0.46, a decrease of 0.74%, closing at $61.57 per barrel.

• Brent July crude oil futures closed down $0.47, a decrease of 0.49%, closing at $64.91 per barrel.

Natural Gas:

• NYMEX June natural gas futures closed down 1.72%, closing at $3.3680 per million British thermal units.

The dollar continues to weaken, with spot gold rising again above $3,300, New York gold futures rose more than 1.1%, and U.S. stocks approached $3,330 at the close.

Gold:

• At the New York close, spot gold rose 0.75%, closing at $3,314.77 per ounce, having risen to $3,324.88 at 03:26 Beijing time.

• COMEX gold futures rose 1.01%, closing at $3,317.80 per ounce

Silver:

• At the New York close, spot silver rose 1.03%, reported at $33.4237 per ounce.

• COMEX silver futures rose 1.51%, reported at $33.675 per ounce.

Other Metals:

• At the New York close, COMEX copper futures rose 0.11%, reported at $4.6590 per pound.

• LME copper futures closed up $14, reported at $9,534 per ton.

• LME tin futures closed down $229, reported at $32,854 per ton. LME nickel futures closed up $84, reported at $15,602 per ton. LME zinc futures closed down $18, reported at $2,693 per ton