Dow Hits Record High as Dollar, Yields Finish Mixed Monday
U.S. stocks kicked off the week with a Dow record and Nasdaq gains, while the dollar ended mixed against major currencies.
U.S. equities surged to start the trading week Monday, with the Dow Jones Industrial Average closing at a fresh record high and the Nasdaq outperforming all major indices, driven by renewed buying in large-cap technology and semiconductor stocks. The S&P 500 also closed firmly higher as investors returned from the holiday weekend in a clear risk-on posture, though gains were concentrated in AI and chip-related names rather than spread broadly across the market.
The U.S. dollar ended the session on mixed footing, rising against four of the seven major currencies. The greenback posted its largest advance against the Japanese yen, gaining 0.45%, while also edging up against the Swiss franc, New Zealand dollar, and Canadian dollar. The dollar slipped against the British pound by 0.26% and fell marginally against the euro and Australian dollar.
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On the economic data front, the ISM Services PMI for June landed exactly in line with consensus at 54.0, confirming that the American service sector is still expanding at a healthy clip. The on-target reading offered no surprises to rate traders, but the underlying details showed business activity remaining resilient even as companies flagged ongoing concerns over tariffs, fuel costs, and geopolitical headwinds.
Federal Reserve Governor Christopher Waller, speaking from a panel in Italy, reaffirmed the Fed's unwavering commitment to returning inflation to its 2% target and defended forward guidance as a valuable communications tool that has meaningfully strengthened monetary policymaking over time. Separately, European Central Bank officials sent a more cautious signal, with ECB's Schnabel warning that the current price shock cannot simply be dismissed, while Wunsch noted that the inflationary impact from Iran-related disruptions appears to have faded with limited second-round effects observed so far.
Crude oil settled slightly lower at $68.55, off $0.14 on the day, while European equity markets posted a split session — Germany's DAX and Italy's FTSE MIB closed at new records, though most other regional indices finished in the red. Continue reading at Forexlive.
