Markets Wrap July 10: Stocks Rise, Yen Strengthens, CAD Shrugs Jobs Beat
Equities pushed higher on chip and AI optimism while the yen gained ground and the Canadian dollar couldn't hold its jobs-data pop.
Tech carried the load again Thursday. SK Hynix's US debut sparked fresh excitement about AI chip demand — the company sees the peak hitting in 2027 but says demand stays hot through 2030. Meta surged 6% after Zuckerberg dropped commentary on data center economics alongside a new model release. The S&P 500 added 0.4%, the Nasdaq tacked on 0.3%, and small caps got left behind with the Russell 2000 slipping 0.5%.
Canada surprised to the upside with 18,200 jobs added in June versus the 10,000 expected. USD/CAD briefly dipped to 1.4120 on the news — then promptly reversed to 1.4157 as broad dollar strength took over. That's the trade: solid data, weak currency response. The loonie just couldn't fight the greenback today.
Read more Apple Stock Hits Record Highs by Playing the AI Game Its Way →
The yen was the real FX story. USD/JPY dropped 65 pips and touched a peak decline of over a full cent. Japanese authorities are clearly signaling a stronger hand against yen weakness, and the market is starting to feel it. That said, there were firm bids on two separate tests of 161.25 — this battle isn't over.
Oil drifted lower by 51 cents to $71.57 as Iran war headlines whipsawed traders. A weekend meeting between the US, Iran, and mediators could reset the tone. Meanwhile, refining cracks are drawing attention as Ukrainian strikes continue hitting Russian capacity and Hormuz traffic stays thin. Gold dipped $9 to $4,112 but bounced hard late in the session — not bad given the dollar's strength. The Fed's report to Congress also flagged a "stepped up" inflation picture in the spring, worth keeping on your radar.
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