WSJ Investment Pulse

Central Bank Policy Shifts

• 🔥 Bank of Japan Rate Hike: The Bank of Japan is expected to raise its policy rate to 1% next week, the highest level...

• Resilient rebound: South Korean AI chip stocks drove Kospi up 4.6% Friday after sharp weekly swings
• SpaceX lift: Trading debut helped push Dow...

The Bank of Japan is widely expected to raise its policy rate to 1% next week, the highest level since 1995, to address surging energy prices and...

Treasury yields remain elevated near multi-year highs around mid-4%, fueled by inflation concerns and Fed policy uncertainty.

• Invesco view: This...

Markets face several potential movers this week as housing starts, retail sales, and the FOMC decision arrive.

• Tuesday: Housing starts expected at...

Market Reactions to Iran Developments

• 🔥 Trump's Iran Stand-Down: The Dow Jones Industrial Average rose 1.9% while oil prices and Treasury...

SpaceX's IPO reveals broad investor appetite from major institutions to everyday traders.

• Institutional order: BlackRock submitted at least a $5B...

Treasury auctions reveal investors pricing in several years of elevated inflation, pushing short-term yields sharply higher.

• 2-year yields have...

Trump's initial strike threat sent Treasury yields higher alongside the dollar as investors sold safe-haven bonds amid rising oil prices. Hot PPI data...

OpenAI is weighing significant price cuts on its AI models to attract users from rival Anthropic, which it expects to make similar reductions. The moves come as both firms prepare IPO filings and compete fiercely for market share.

The EU Central Bank's rate hike decision stands in contrast to its acknowledged 2022 mistake, with Europe's growth outlook now hanging in the balance....

DoJ subpoenas to major banks mark an escalation in scrutiny of account closures, shifting review responsibility from the Office of Comptroller despite banks' denials of religious or political motivations.

Geopolitical shocks have upended the classic bond-equity hedge, with 10-year Treasuries posting negative 1.5% returns since late February while...

• Pricing shock: SpaceX set a flat $135 share price for its IPO, locking in a $1.77 trillion valuation without a traditional range.
• Expert rebuke:...

Market Highlights

• 🔥 Jobs Report Impact: A strong May jobs report of about 170,000 new jobs triggered the Nasdaq-100's worst day in months with a...

Strong May jobs data (170k new positions) sparked higher-for-longer rate expectations, sending Treasury yields spiking and triggering a broad equity...

Reserve Asset Shifts

• 🔥 Gold Overtakes Treasurys: Gold has overtaken Treasurys as the top asset in foreign reserves held by central banks,...

Strong May jobs data drove 10-year yields to 4.54% and pressured stocks lower, while looming inflation at 4.18% keeps corporate spreads pinned near...

Fed Chair Kevin Warsh appointed conservative policy veterans Paul Winfree and Daniel Heil as temporary contractors for policy analysis, offering an early clue to his direction while permanent roles remain undecided.

• AI rally fatigue: Broadcom's disappointing guidance sparked a sharp tech selloff, with shares dropping 14-15% and cybersecurity names like...