International markets update:
Investors are taking an optimistic view towards the end of a see-saw week, despite President Trump’s strong opinions on interest rates, economic pressure on Iran, and support for the crypto industry.
- President Trump reignited criticism of the Federal Reserve, labeling current interest rates “ridiculous” and suggesting political motives behind rate hikes, even as the Treasury plans to double debt buybacks to stabilize the bond market.
- The Treasury Department announced a significant move to double government debt buybacks, specifically targeting longer-duration bonds where yields have surged, while overall U.S. government debt has now exceeded $40 trillion.
- Trump outlined plans for “economic warfare” against Iran, vowing the “most crushing economic operation ever taken against any country” and threatening severe financial penalties for any nation aiding Tehran in evading sanctions.
- Bitcoin and other cryptocurrencies surged after President Trump urged Congress to pass a “fair version of the Clarity Act” to define legal classifications of crypto assets, signaling strong support for the sector.
- Technology stocks across Asia saw a significant rebound, led by AI chipmaker SK Hynix, whose shares jumped up to 12% following a substantial stock buyback announcement, contributing to a brief halt in Kospi trading.
- Moderna and Merck shares rallied significantly following positive initial results from an experimental cancer vaccine, bringing both pharmaceutical giants closer to regulatory approval for a potentially transformative treatment.
Stock Market News summarised for the Wall Street Investors Club community.