The S&P 500 finished modestly higher, with strength concentrated in growth and tech. With inflation largely meeting expectations, uncertainty around the rate path eased, and solid AI-linked earnings provided additional lift.

The Nasdaq closed higher, reinforcing a growth-led risk-on tone. Tech and AI—highly sensitive to rates—looked particularly supported as easing rate anxiety and improving earnings expectations reduced perceived valuation pressure.

The Dow was essentially flat, reflecting a more defensive positioning. Even as rate fears eased and markets favored growth, capital appeared to rotate more toward tech than toward dividend/value-heavy exposures.

Long-duration Treasuries slipped slightly, suggesting reduced demand for pure duration exposure. As CPI relief stabilized the long-end rate outlook, the upside appeal of TLT-like positioning likely wasn’t as strong.

Gold moved higher as hedging demand around inflation/geopolitical tail risks persisted. The upside also appears supported by a relief backdrop—markets felt less threatened on the inflation front, allowing a bounce in bullion.

Silver rose steadily, aligning with gold as hedging demand stayed supported. Alongside that, expectations for industrial demand and a technical rebound component appear to be contributing.

Energy (oil) pulled back, but the geopolitical supply-risk premium hasn’t disappeared. The drop looks more like a post-rally pause than a full trend reversal, with renewed inflation risk remaining the key factor.

Bitcoin drifted slightly lower without a strong directional catalyst. With inflation coming in as expected and “relief” dominating markets, risk appetite improved, but crypto’s sensitivity to broader trust/liquidity signals kept the reaction muted.

Ethereum also slipped slightly, suggesting limited short-term momentum. While equities rallied on AI strength, crypto didn’t get enough new valuation or macro impulse despite the calmer inflation backdrop.

Emerging markets gained as dollar pressure remained contained and risk appetite spilled over. With U.S. inflation concerns muted, investors may have been more willing to allocate toward higher-beta assets.

Europe was broadly flat, lagging the U.S. on relative momentum. Even with easing rate expectations, region-specific growth and energy concerns likely limited the upside for European risk assets.

Japan equities rose, benefiting from the improving U.S. risk tone. With the dollar not surging sharply and global risk appetite staying intact, Japan’s relative performance looked stronger.

The U.S. 10-year nominal yield fell, indicating easing concerns about the long-run rate path. With inflation not surprising to the upside, markets reduced the perceived need to price in additional tightening.

The 10-year real yield was steady, indicating the inflation-adjusted return backdrop remained stable. Still, because real yields sit relatively elevated, equity valuation pressure may not be fully relieved yet.

The dollar index closed slightly higher without a major push. With inflation risks not re-accelerating, and easing expectations still somewhat constrained in the longer run, FX moves stayed relatively subdued.

The 10Y–2Y spread widened, nudging the curve toward a more normalized shape. As near-term rate concerns eased, the balance of expectations between long and short rates shifted—potentially reducing recession signaling, though not eliminating it.