At the end of Wednesday, the Dow Jones Index (US30) decreased by 1.91%. The S&P 500 Index (US500) was down 1.61%. The Nasdaq Technology Index (US100) closed lower by 1.34%. The US stocks fell on Wednesday as a sharp rise in Treasury yields and renewed fiscal concerns weighed heavily on investor sentiment. Long-term bond yields rose after a weak $16 billion auction of 20-year Treasuries, and 30-year yields jumped to 5.08%, the highest level since 2023, amid heightened concerns that Washington’s proposed tax-and-spending bill could further widen the federal budget deficit.

Bitcoin surpassed the $109,500 mark for the first time ever, extending a rally since mid-April, as the advancement of legislation to regulate stablecoins in the US supported the outlook for digital assets. Democrats in Congress dropped their opposition to a bill aimed at regulating stablecoins, paving the way for its passage by the end of the week. The move reinforced expectations that government regulation of digital assets tied to the US dollar could spur adoption of the asset class.

Equity markets in Europe traded flat on Wednesday. Germany’s DAX (DE40) was up 0.36%. France’s CAC 40 (FR40) closed down 0.40%, Spain’s IBEX35 (ES35) fell by 0.11%, and the UK’s FTSE 100 (UK100) closed positive 0.06%. European equities closed unchanged, holding near two-month highs hit in the previous session, as a lack of new catalysts kept hopes alive that rising government spending in Europe would lead to increased investment among corporate giants.

Silver (XAG/USD) prices climbed above $33.1 an ounce on Wednesday, testing the highest level in three weeks, amid a weaker dollar and evidence of heavy buying by the industry. The dollar came under pressure despite a fresh rise in long-dated Treasury yields, reflecting lingering doubts about the exclusivity of US assets and consistent with the recent rush into precious metals in search of safety.

WTI crude oil prices reversed previous gains and are trading below $62 a barrel after an unexpected increase in US crude inventories. The EIA reported a 1.328 million barrel increase in crude inventories, contradicting expectations of a 1.85 million barrel decline.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) fell by 0.61%, China’s FTSE China A50 (CHA50) gained 0.69%, Hong Kong’s Hang Seng (HK50) rose by 0.62%, and Australia’s ASX 200 (AU200) gained 0.52%. Japanese stocks hit a two-week low and followed a sharp sell-off on Wall Street overnight. Japan’s Core Machinery Orders, a key leading indicator of capital investment, unexpectedly rose 13% in March, well above expectations of a 1.6% decline. Despite the upbeat data, sentiment was dampened by weak economic signals elsewhere: manufacturing activity remained in contractionary territory in May, while growth in the services sector also slowed.

Malaysia’s annual inflation rate for April 2025 was 1.4%, unchanged from March and in line with market expectations. It remained the lowest since February 2021, with food prices rising the least in six months (2.3% vs. 2.5% in March). Core consumer prices, excluding volatile fresh food and administrative expenses, rose to 2.0% y/y in April after increasing 1.9% in the previous two months, the sharpest pace since November 2023.

Singapore could slip into a technical recession this year, a government official warned after final GDP data confirmed the economy shrank in the first quarter of 2025, even before US tariffs take effect. The country’s trade-dependent economy grew 3.9% y/y but contracted 0.6% q/q.