The dollar index (DXY) rose to 101.44 on Wednesday, its highest level in 13 months since May 13, 2025. Demand was supported by safe-haven buying after a sharp pullback in global technology shares and by firmer expectations for Fed rate hikes. Markets are pricing a 37% chance of a 25-basis-point hike in July and 70% in September, according to CME FedWatch. The yen slid to 161.57, while the euro touched $1.1375 and sterling and the New Zealand dollar also came under pressure.

Global equities fell on Tuesday after a broad selloff in technology and semiconductor shares sent the Nasdaq down 2.2%. Nvidia slid 4% and Tesla fell nearly 6% as investors took profits ahead of Micron’s earnings. Gold dropped 1.93% to $4,109.49 an ounce, pressured by higher U.S. yields and a stronger dollar. Brent crude stayed below $80 a barrel after a 60-day U.S. waiver of Iran sanctions eased supply concerns.

Global equities fell on Tuesday, with the Nasdaq down 1.6% and the S&P 500 off 1% as chip stocks slid 7%. Markets positioned for a more aggressive Federal Reserve response to inflation, pushing the 2-year U.S. Treasury yield to a 16-month high and leaving money markets close to fully pricing a rate hike by September. Oil held below $80 a barrel after a temporary waiver on Iran sanctions eased supply worries, while the yen hovered near 40-year lows and gold fell 1.5%.

Global technology stocks extended losses for a second session, with the Nasdaq falling more than 2% and the S&P 500 down 1.6%. Micron Technology tumbled more than 11%, while semiconductor shares in South Korea and Japan also sold off sharply. Investors have focused on surging AI-related compute costs and tighter memory-chip supply that has pushed prices higher, alongside hawkish signals from the U.S. Federal Reserve that have revived expectations for two rate hikes this year. A U.S. waiver of sanctions on Iranian oil and petrochemical exports has also stirred concerns about renewed energy-driven inflation, though it has not disrupted supply, according to ANI.

Repeated Ukrainian drone strikes on Russian refineries in recent months have tightened fuel supplies, triggering gasoline shortages, surging prices and long lines at filling stations in several regions. The Moscow Exchange index slid to a three-year low, while the rouble weakened past 75 to the U.S. dollar for the first time since May 6. Russia’s central bank warned that reduced fuel output could push inflation higher. The disruptions amount to a material shock to global oil supply by directly affecting refining.

Global stocks fell as technology shares led declines, with Nasdaq futures down more than 2.5% and SpaceX dropping nearly 17% in the prior session. U.S. Treasury yields jumped, with the 2-year at a 16-month high as markets move closer to fully pricing in a September rate increase. The dollar index rose to a one-year high, while the yen hovered near a 40-year low and the euro and pound weakened. Gold fell 1.7% to $4,120 an ounce and Brent crude stayed below $80 a barrel.

Expectations for U.S. Federal Reserve rate hikes rose sharply, with Fed funds futures pricing a 54% chance of at least two 25-basis-point increases by year-end, up from 15.2%. U.S. equities fell, led by tech, with the Nasdaq Composite down 1.3% and the S&P 500 off 0.4%. Brent crude added 0.2% to $78.03 a barrel, while gold slipped 0.2% to $4,180.38 an ounce. Japan’s Nikkei 225 fell 0.6%, while Taiwanese stocks opened 0.9% higher to a new high.

The United States and Iran held a first round of talks in Switzerland and agreed on a roadmap toward a final deal within 60 days, sending oil prices lower. Federal Reserve Chair Kevin Warsh struck a hawkish tone, prioritizing a return to price stability and pushing U.S. Treasury yields higher. The Nasdaq fell 1.32% as tech shares led by Alphabet (down 5%) slid, with Meta, Amazon and Microsoft also lower, while SpaceX sank 16.4%. Investors are watching Thursday’s PCE inflation data and Micron’s quarterly results due Wednesday.

U.S. and Iranian officials held a first round of talks in Switzerland, with mediators saying they made “encouraging progress” and agreed to a roadmap toward a final deal within 60 days, though differences remained over Lebanon and the Strait of Hormuz. Semiconductor stocks climbed, pushing the Philadelphia SE Semiconductor index to a record as Micron Technology and Sandisk rose about 3% and Nvidia and Intel gained 1% and 2%. The Dow and S&P 500 posted modest gains while the Nasdaq slipped 0.01%. Oil prices fell as much as 2%.