U.S. pre-market technology stocks rose, with Taiwan Semiconductor up over 4%. The dollar continued its upward trend, and the market is focused on Powell's future direction

After a brief panic in the market last night due to Trump's threat to fire Powell, the dollar successfully rebounded today, with active buying on dips. Meanwhile, technology stocks generally rose.

On Thursday, the 17th, the dollar rose 0.3% against a basket of currencies, continuing its upward trend this month. This performance is mainly attributed to the market's reduced expectations for a rate cut in the U.S. in 2025. European and Asian stock markets generally rose, with Taiwan Semiconductor raising its revenue growth forecast, further boosting investor confidence in strong spending in the global artificial intelligence sector. Nasdaq 100 futures rose 0.2%.

• In pre-market trading, Taiwan Semiconductor rose over 4%, with the company's Q2 net profit surging 61% above expectations, and it is expected that sales will grow by about 30% this year; Li Auto rose nearly 7%, with the Li i8 now open for reservations, expected to be priced between 350,000 and 400,000 yuan.
• European stocks opened higher, with the Euro Stoxx 50 index up 0.55%, the German DAX index up 0.63%, and the UK FTSE 100 index up 0.30%. Volvo rose 2.7%, with the company's Q2 revenue exceeding expectations.
• The Nikkei 225 index closed up 0.6%, at 39,901.19 points. The Tokyo Stock Exchange index closed up 0.7%, at 2,839.81 points.
• The dollar spot index rose 0.3%.
• The euro against the dollar fell further, now down 0.5% to 1.1584.
• The yen against the dollar fell 0.5% to 148.60.
• U.S. Treasury yields rose across the board, with the 10-year Treasury yield up 2 basis points to 4.48%.
• Bitcoin fell 1.6% to $117,996.84.
• Spot gold fell 0.5% to $3,329.46 per ounce.

Powell's Future Draws Attention, Fed Policy Under Scrutiny

On Wednesday, speculation about the future of Federal Reserve Chairman Powell stirred the market, but after Trump downplayed the possibility of replacing Powell, market sentiment stabilized. For a long time, Trump has advocated for lower interest rates and has repeatedly expressed dissatisfaction with Powell.

U.S. Treasury yields rose across the board, with the 10-year Treasury yield up 2 basis points to 4.48%. John Williams, president of the New York Federal Reserve Bank, defended the Fed's restrictive policy stance, stating it is "entirely appropriate."

Michael Brown, senior research strategist at Pepperstone, believes that this price reaction supports his "long-term bearish view on the dollar," stating that:

"As the independence of monetary policy is rapidly eroded, any rebound is an opportunity to short the dollar."