All major gains! Federal Reserve, making a major announcement!

U.S. stock markets overnight saw a rebound in technology stocks, boosting market sentiment, with the Nasdaq rising nearly 1% and the Dow hitting a new all-time high. Precious metals led the rally, with gold and silver prices surging across the board. COMEX gold futures rose over 2%, and COMEX silver futures jumped 8%.

Analysts pointed out that the continued weakening of the US dollar has provided additional support for risk assets and precious metals. On February 9, Eastern Time, the dollar weakened significantly, with the US Dollar Index, which measures the dollar against six major currencies, dropping 0.84% and falling below the 97 level. In response, Atlanta Federal Reserve President Raphael Bostic stated that he is beginning to see doubts about confidence in the dollar. Federal Reserve Board member Michelle Bowman said that the current level of dollar decline has not yet had a substantial impact on monetary policy.

All Major Indices Rise

On February 9, Eastern Time, the three major US stock indices opened lower but recovered to close higher, with the Dow reaching a new all-time high and the S&P 500 approaching its record high. At the close, the Dow rose 0.04%, the S&P 500 increased 0.47%, and the Nasdaq gained 0.90%.

Most large-cap tech stocks advanced, with Oracle soaring over 9%, Microsoft, Broadcom, and AMD rising more than 3%, Nvidia and Meta up over 2%, Tesla up over 1%, and Google closing slightly higher. Apple fell more than 1%, and Amazon saw a slight decline.

The surge in Oracle was mainly driven by D.A. Davidson upgrading its rating. Analyst Gil Luria believes that the market’s sell-off of Oracle may have been overdone.

Google’s parent company Alphabet plans to raise $20 billion through dollar-denominated bonds, exceeding the previously expected $15 billion. The issuance attracted over $100 billion in orders.

Additionally, analysts believe that the capital expenditure of large cloud providers still has room to grow. Morgan Stanley’s latest report states: “As the monthly token processing volume grows exponentially, the revenue growth of GCP/AWS/Azure accelerates, data center commitments expand, and data center component suppliers emphasize increasing demand, we believe that the capital expenditure estimates for hyperscale cloud providers will continue to face upward pressure.”

Morgan Stanley strategist Michael Wilson noted that revenue growth expectations for large tech stocks have reached multi-decade highs, but valuations have declined after recent market volatility. The decline in software stocks provides some stocks with attractive entry points.

CFRA’s Sam Stovall said that the previous correction in the tech sector was a necessary digestion of overvaluation. The industry is expected to grow earnings per share by 32% in 2026 and another 20% in 2027, compared to the S&P 500’s projected increases of 13% and 16%, respectively.

Meanwhile, the precious metals market also rallied across the board, with COMEX gold futures up over 2%, at $5,084.2 per ounce; COMEX silver futures surged 8%, at $83.05 per ounce.

Oil prices also continued to strengthen, with WTI crude futures rising 1.27% to $64.36 per barrel, and Brent crude futures up 1.45% to $69.04 per barrel.

In geopolitical news, the U.S. issued guidance to ships passing through the Strait of Hormuz, advising “vessels flying the U.S. flag should stay as far away from Iranian waters as possible and verbally refuse to comply if Iranian forces board—crew members should not resist forcibly if boarded by Iranian forces.”

The Strait of Hormuz is a critical route for Middle Eastern oil supplies. Due to regional tensions, Iran has previously threatened to close the strait multiple times.

Federal Reserve’s Latest Remarks

On February 9, Eastern Time, Federal Reserve Board member Stephen M. Miller stated that the impact of the Trump administration’s tariffs on the economy has been “quite limited.”

Miller also rebutted the common view among economists that tariffs are ultimately borne by American consumers through higher prices, rather than by exporting countries through lower profit margins.

He added that combining tariffs with other government policy adjustments can help improve the long-term outlook for government finances. Tariff revenues could play a significant role in reducing the federal deficit.

The legality of the Trump administration’s tariffs is currently under review by the Supreme Court, which may overturn these policies. President Trump previously warned that such a ruling would be a disaster.

During a speech at Boston University’s Questrom School of Business, Miller said that the current level of dollar decline “does not have a significant impact on consumer inflation,” and only severe declines would have such an effect.

He further added that, regarding the dollar’s decline, “I believe it has not yet had a substantial impact on monetary policy.”

On the same day, the dollar index fell sharply, dropping 0.84% to close at 96.814, reflecting a broad weakening against six major currencies.

Also on that day, Atlanta Fed President Raphael Bostic said he is beginning to see doubts about confidence in the dollar. Volatility in employment data is another reason the Fed remains cautious.

Regarding the outlook for rate cuts, Miller previously stated that potential inflation is not a problem and that there are not many signs of strong price pressures in the economy. The Fed is expected to cut rates by more than 100 basis points this year, and he is looking forward to how Jerome Powell performs as Fed Chair.

According to CME’s “FedWatch,” as of press time, the probability of the Fed cutting rates by 25 basis points by March is 17.7%, with an 82.3% chance of holding rates steady. The probability of a cumulative 25 basis point cut by April is 32.4%, with a 63.5% chance of no change, and a 4% chance of a 50 basis point cut. By June, the chance of a 25 basis point cut is 50.4%.