Markets Wrap July 10: Stocks Rise, Yen Gains, CAD Jobs Beat
US equities climbed Thursday on chip and AI optimism while the yen strengthened and Canada's job market surprised to the upside.
US stocks pushed higher on Thursday, July 10, as strong chip-sector commentary from SK Hynix's US market debut and a 6% surge in Meta shares powered the S&P 500 up 0.4% and the Nasdaq up 0.3%. SK Hynix projected peak chip demand in 2027 but said appetite would remain robust through 2030, while Meta CEO Mark Zuckerberg offered upbeat remarks on data center economics following the company's latest AI model release. Small-caps lagged, with the Russell 2000 slipping 0.5%.
Canada's labor market delivered a firm surprise Friday morning, adding 18,200 jobs in June against an economist consensus of 10,000. The data briefly knocked USD/CAD down to 1.4120, but broad dollar strength pulled the pair back to 1.4157, limiting the Canadian dollar's gains. Separately, Canadian building permits for May fell 1.7%, well below the 2.4% gain analysts had forecast, signaling some softness in the construction pipeline.
Read more Meta Stock Surges to Best Week Since Early 2024 on AI Optimism →
The Federal Reserve's semi-annual report to Congress flagged a "stepped up" pace of inflation in the spring, adding a cautionary note to an otherwise risk-on session. US 10-year Treasury yields edged two basis points higher to 4.56%, reflecting ongoing sensitivity to the inflation outlook. Deutsche Bank separately noted that a single dominant theme has driven foreign-exchange markets throughout 2025.
In commodities, WTI crude slipped 51 cents to $71.57 as conflicting headlines around Iran-related geopolitical risk kept traders on edge. A weekend meeting between US and Iranian officials — with mediators present — is scheduled in an effort to revive stalled negotiations. Gold shed just $9 to close near $4,112 after a late-session bounce, and Baker Hughes reported the total US oil rig count rose by one to 580. The Japanese yen was the standout currency performer, with USD/JPY dropping more than 65 pips as mounting pressure against yen weakness finally showed some traction, though buyers defended the pair near 161.25 on two separate tests.
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