In a shortened session ahead of the July 4th Independence Day holiday, both the S&P 500 and the tech-heavy Nasdaq Composite closed at record highs. The rally was primarily driven by megacap technology stocks, with Tesla and Nvidia leading the charge.
While there were no significant movements in the Forex market, traders should remain vigilant due to potential unpredictable price changes in the low-liquidity holiday market. The yield on the 10-year Treasury fell, influenced by the latest economic data suggesting a cooling jobs market.
Meanwhile, U.S. oil prices edged higher as demand increased ahead of the holiday.

Asia-Pacific Markets
The Asia-Pacific region experienced a generally upbeat day. Softer U.S. economic data strengthened the case for a potential rate cut by the Federal Reserve in September.
The Japanese Yen is approaching the support zone around the 161.00 level against the U.S. Dollar.
The Australian Dollar has broken through the upper limit of its local range but has not yet to significantly develop on this movement.

European Markets
The primary focus in Europe is the upcoming UK election, where the main uncertainty is the extent of Labour's expected majority. There is a possibility that tactical voting could push the Conservatives to third place, potentially making the centrist Liberal Democrats the main opposition and altering the traditional balance of power in Parliament.
The British Pound remained near-flat against both the U.S. Dollar and the Euro.

American Markets
Anticipation of a September rate cut by the Federal Reserve has increased, with futures now placing the probability at 74%, up from 65% prior to the release of softer economic data. This expectation has contributed to a decrease in the 10-year Treasury yield, which fell by 8 basis points. Although the Treasury cash market is closed for the July 4th holiday, futures imply that the 10-year yield is holding steady at 4.35%.