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On July 7, data from the CFTC revealed that as of the week ending June 30, hedge funds had raised their net short positions on the yen in the futures and options markets to nearly 138,000 contracts, marking the most pessimistic level since 2007. The yen simultaneously fell to its lowest point since 1986, dropping below 162 yen to the dollar, raising market expectations for potential intervention by Japanese authorities in the currency market. Japan's Finance Minister reiterated that authorities could take foreign exchange intervention measures at any time, following a record-scale intervention to support the yen from late April to May. The market believes that the widening interest rate differential between the U.S. and Japan remains the main factor pressuring the yen, even though the Bank of Japan's recent interest rate hike has not reversed the weakness.

Odaily reported that a federal judge in the District of Connecticut has reinstated common law fraud claims in the Genesis Yield lawsuit against Digital Currency Group founder Barry Silbert, DCG, and other defendants, while also allowing the federal securities law-related claims in the case to proceed. This ruling revises an earlier court decision from February of this year. The plaintiffs previously argued that the court had jurisdiction under the Class Action Fairness Act to hear their state law claims. Judge Stefan Underhill agreed with this position and revisited the relevant state law claims. The case centers on the failed Genesis Yield lending program, which allowed users to deposit crypto assets and earn interest. Investors allege that Silbert, DCG, and other defendants knowingly misled customers about the company’s financial health and risk controls after Genesis suspended withdrawals and before it filed for bankruptcy in early 2023, despite being aware of the issues. However, not all state law claims have been revived. The court dismissed consumer protection claims from four states and stayed the related claims from three other states. Overall, the ruling brings the dispute over DCG and Silbert’s liability for fraud back to the forefront of the case. (The Block)

Glonghui, July 7th｜All three major U.S. stock indexes closed higher on Monday. The Dow Jones rose 0.29% to 53,055.91 points, surpassing the 53,000 mark for the first time in history and setting a new record high; chip stocks led the Nasdaq Index up, which closed up 1.12%; the S&P 500 Index rose 0.72%. Most popular tech stocks gained, with Tesla and AMD up over 6%, ASML up over 3%, and Meta up nearly 3%. Broadcom rose 3.73% after expanding its cooperation with Apple through 2031. Intel climbed more than 1% after the company raised prices for some CPU products. Microsoft fell 0.96% after announcing it would cut 4,800 staff, accounting for 2.1% of its total workforce. SpaceX dropped nearly 1% as it will officially join the Nasdaq 100 Index on Tuesday. Automobile manufacturing, computer hardware, and cryptocurrency concept stocks posted the biggest gains. Rivian jumped over 8%, Western Digital soared more than 7%, Lotus and Circle rose over 6%, and Logitech, Quantum, and HP soared more than 3%. Dell Technologies increased more than 4% after Trump praised Dell for its donation to the "Trump Account" project, urging people to “go buy a Dell computer.” Weight loss drug, food packaging, and cruise stocks declined, with Pfizer and Novo Nordisk both down more than 2%. Anthropic launched Claude Fable 5, further fueling market demand for high-end AI models and benefiting chip stocks. In addition, Korean chipmaker SK Hynix started the U.S. listing process this week, planning to raise about $28 billion, which will serve as a key indicator of market interest in AI-related companies. The market is watching for the Federal Reserve to release the minutes from its June monetary policy meeting this week. This meeting was the first interest-rate meeting chaired by the new chairman, Kevin Walsh, and the minutes are scheduled for release on Wednesday. Investors will look for the latest assessment of the impact of rising energy prices on inflation, as well as any signs of disagreements among officials.