NVIDIA Corporation (NVDA.US) tech stocks surge on the eve of financial report: safe-haven funds withdraw, traditional safe-haven assets like the US dollar weaken.

Notice that the rise in technology stocks has prompted investors to pull out of safe-haven assets, causing US bond prices to fall and the US dollar exchange rate to decline simultaneously. NASDAQ stock futures rose by 0.2%, continuing the 1% gain in the technology stock index on Tuesday. After weeks of volatility, concerns about the disruptive impact of artificial intelligence on the market have eased. The yield on the US 10-year Treasury bond rose by two basis points to 4.05%; meanwhile, the US dollar and the Japanese yen lagged behind most major currencies. The return of risk appetite also led to currency markets reducing bets on a rate cut by the Federal Reserve, increasing pressure on the bond market. Evelyn Gomz-Richti, strategist at MUFG Securities International, said: "With the yield on the 10-year US bond so close to the psychological barrier of 4%, I believe that shorting after any buying opportunity will be more valuable." Swap contracts linked to the dates of the Federal Reserve policy meetings show that the probability of a 25 basis point rate cut before June has dropped to 50%, the lowest level this year. The possibility of a third rate cut by the end of the year has also almost disappeared. Traders will be watching for speeches from three Federal Reserve policymakers later on Wednesday. Thomas Barkin, Jeffrey Schmied, and Alberto Mussalem all hold slightly hawkish views on monetary policy and do not have voting rights this year. Bond demand will face a test. Following the strong issuance of two-year bonds on Tuesday, the US Treasury Department will auction $70 billion in new five-year notes at 1 pm New York time. Next, market focus will shift to the latest quarterly earnings report from NVIDIA Corporation (NVDA.US), to be released after market close on Wednesday. Investors are waiting for new evidence to prove that the AI spending boom is still on track.