US equities closed mixed as hotter-than-expected producer price inflation reinforced Bank of America's blunt warning about Federal Reserve rate cuts. The S&P 500 declined 0.17% to 736.95, weighed down by concerns over persistent inflationary pressures. The Dow Jones underperformed, falling 0.40% to 49,562, while the Nasdaq 100 managed a marginal 0.02% gain to 26,094, supported by semiconductor strength. Technology emerged as the session's standout sector, with Nvidia leading mega-caps higher by 1.21% to $223.45 amid continued AI optimism. Taiwan Semiconductor rallied on robust chip demand, while Monolithic Power Systems surged following strong quarterly results. The tech rally gained additional momentum from news that Cook, Musk, and Huang are joining Trump's upcoming China summit. Apple added 0.26% to $295.56 and Meta gained 0.40% to $605.40, though Amazon slipped 0.30% to $265.04. 🇪🇺 European Close: Regional Indices Post Modest Gains Despite Macro Headwinds European markets closed higher despite lingering inflation concerns. The DAX outperformed with a 0.59% gain to 24,095, while the FTSE 100 advanced 0.41% to 10,307. The CAC 40 finished essentially flat, down just 0.01% to 7,979. European financials benefited from reduced rate cut expectations, though energy names provided additional support as oil prices firmed. 🏛️ FX — Session: Dollar Strengthens on Inflation Persistence The dollar extended gains against major currencies as hot PPI data reinforced the Federal Reserve's cautious stance on monetary easing. EUR/USD declined 0.26% to 1.1714, breaking below key technical support as the euro weakened on diverging monetary policy expectations. USD/JPY edged 0.11% higher to 157.77, approaching intervention-risk levels as the yen remains under pressure from persistent rate differentials.

Commodities presented a mixed picture with energy leading gains. WTI crude rose 0.36% to $102.55 as geopolitical tensions support prices ahead of Trump's China visit. Natural gas surged 1.72% to $2.8920 on supply concerns. Silver outshined gold with a 2.11% rally to $87.39, while gold slipped 0.18% to $4,678. Cryptocurrencies declined broadly, with Bitcoin falling 1.20% to $79,507 and Solana dropping 2.94% to $91.51.

Key focus shifts to retail sales data and Fed speakers' commentary on inflation persistence. Watch for technical support at S&P 500's 735 level and EUR/USD's 1.17 handle. Energy earnings continue with potential volatility around $100 WTI psychological support.

Key focus shifts to retail sales data and Fed speakers' commentary on inflation persistence. Watch for technical support at S&P 500's 735 level and EUR/USD's 1.17 handle. Energy earnings continue with potential volatility around $100 WTI psychological support.