U.S. stocks fell on Thursday, with the Dow hitting a more than three-month low as Middle East tensions pushed Brent crude futures up to $107 a barrel. Higher oil prices added to inflation worries, sending the 30-year U.S. Treasury yield to its highest level since 2004. Tech shares led losses in the S&P 500, with Nvidia, Broadcom and Microsoft each down more than 1%. Oracle slid 5% after a report said it issued a force majeure notice tied to a large New Mexico data center project.

Darden Restaurants reported first-quarter results with higher sales, but profits fell and expenses rose, pressuring the stock. Stitch Fix posted a fourth-quarter loss from continuing operations of 2.0c per share. The company also forecast a much weaker full-year 2027 EBITDA than analysts expected, sending its shares lower.

Financial shares fell in a broader equities selloff as expectations grew that the Federal Reserve could keep raising interest rates. Fed Governor Michael Barr said additional rate increases are likely needed to bring inflation down to the central bank’s target. Forward Industries said it signed a $25 million securities purchase agreement with an institutional investor. In crypto markets, bitcoin ETFs recorded net inflows of more than $2.3 billion over four consecutive days, and analysts said $90,000 is the next psychological level for bitcoin.

On July 1, spot gold climbed 2.1% to $4,089.49 per ounce, a near six-month high, while silver, platinum and palladium rose 2.8%, 3.1% and 1.6%, respectively. The move followed an ADP report showing U.S. private payrolls rose by 98,000 versus forecasts of 118,000, alongside Federal Reserve Chair Kevin Warsh saying inflation expectations and risks have eased, according to Reuters. Lower Treasury yields boosted demand for non-yielding precious metals. Markets are awaiting Thursday’s U.S. nonfarm payrolls report.

U.S. job openings rose to a two-year high in May, a sign the labor market remains strong and giving investors more reason to expect the Federal Reserve to keep rates high or raise them again. Markets are now focused on Thursday’s June nonfarm payrolls report for clues on the policy path. The dollar index was 101.393 and the U.S. 10-year yield rose to 4.46%, while gold slipped below $4,000 to 3,979 and Brent and WTI traded at $71.91 and $68.59, respectively, pressured by a strong dollar and high rates.

Most currency strategists still expect the U.S. dollar to weaken in the months ahead, even after a roughly 4% rebound from May’s low, a Reuters FX poll conducted June 26–July 1 showed. They pointed to cooling oil prices that are easing inflation worries and reducing expectations for Federal Reserve rate hikes. A growing minority has turned less bearish, with about one-third now forecasting the euro to be flat or lower against the dollar over the next three months. Oil was cited as a key driver of the outlook.

On July 1, U.S. stock index futures opened lower, with Dow, S&P 500 and Nasdaq 100 futures down 0.26%, 0.3% and 0.54%, respectively. The move followed Iran’s refusal to meet senior U.S. officials who traveled to the Middle East, reviving doubts over the outlook for peace talks. Investors are also watching remarks from Federal Reserve Chair Kevin Warsh at a forum in Portugal and the upcoming ISM manufacturing data. Strong employment data has reinforced expectations of an interest-rate hike later this year.

On July 1, spot gold fell 0.8% to $3,974.75 an ounce, after touching an intraday low of $3,942.99, the weakest level since last November. Silver, platinum and palladium also declined. The drop followed a sharp rise in U.S. Treasury yields, with the 10-year at 4.465%, and a market-implied 67% chance of a Fed rate hike by September, compounded by Cleveland Fed President Beth Hammack signaling a preference for further tightening.

U.S. stock index futures were broadly lower, with S&P 500 and Dow futures down 0.4% and Nasdaq futures off 0.55%. New York gold futures slid 1.6% to $3,974 an ounce as Treasury yields pushed to one-week highs, with the 2-year at 4.175% and the 10-year at 4.464%. Traders leaned further into expectations for additional Federal Reserve rate increases ahead of Thursday’s June nonfarm payrolls report and remarks expected from new Fed Chair Kevin Warsh at the Sintra forum. Tech names including ASML and Micron were weaker in premarket trading.