Markets Wrap July 10: Stocks Rise, Yen Gains, Canada Jobs Beat

US stocks advanced Thursday as upbeat commentary on artificial intelligence chip demand and a strong Meta earnings-adjacent catalyst pushed the S&P 500 up 0.4% and the Nasdaq 0.3%, even as small-caps slipped, with the Russell 2000 shedding 0.5% on the session. SK Hynix's US market debut drove positive sentiment around chip demand, with the company projecting the sector peak in 2027 but sustained elevated demand through 2030. Meta shares surged 6% after CEO Mark Zuckerberg offered encouraging remarks on data center economics following the release of a new AI model.

Canada's labor market surprised to the upside, adding 18,200 jobs in June against expectations of just 10,000. The loonie briefly rallied on the news, pushing USD/CAD down to 1.4120, but broad dollar strength quickly reasserted itself and the pair rebounded to 1.4157. Separately, Canadian building permits for May fell 1.7%, well below the 2.4% gain analysts had anticipated.

Read more Dow Jones Top Gainers and Losers: Friday Session Movers →

The Japanese yen was the top-performing currency of the session, with USD/JPY dropping 65 pips and briefly falling more than a full cent at its peak move. Analysts see growing signs of official resistance to further yen weakness, though the pair found solid buying interest on two separate tests of the 161.25 level, signaling the battle is far from over.

Oil markets churned on mixed geopolitical headlines surrounding Iran, with WTI crude settling down 51 cents at $71.57. A weekend meeting between US and Iranian officials and mediators is scheduled to attempt to revive stalled nuclear talks. Meanwhile, gold dipped $9 to close near $4,112, recovering most of an earlier loss, while the 10-year US Treasury yield ticked up 2 basis points to 4.56%. A Fed report to Congress acknowledged a notable pick-up in inflation during the spring, adding another layer of caution to the rate-cut outlook.

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