Technical overbought triggers a pullback, global stock market rally pauses, Nasdaq futures down 0.2%, precious metals plunge across the board, oil prices under pressure.

Technical overbought triggers a pullback, global stock market rally pauses, Nasdaq futures down 0.2%, precious metals plunge across the board, oil prices under pressure.

The previous period's continuous rise, driven by the AI boom and expectations of interest rate cuts by the Federal Reserve, has pushed Asian stock markets into a "technically overbought" zone, causing the rally to take a pause. In the weak market sentiment, U.S. stock index futures edged lower, and European stocks opened flat. Precious metals tumbled across the board, and oil prices came under downward pressure.

On January 7, U.S. stock index futures were mixed, European stocks opened with mixed performance, and most Asian stock indexes declined. U.S. Treasury yields fell, and the dollar was basically flat. Gold, silver, and palladium plunged collectively, all types of crude oil fell by more than 1%, and cryptocurrencies came under pressure.

According to Wallstreetcn, the commodities market is facing critical technical adjustment pressure. The Bloomberg Commodity Index (BCOM) is set for annual weight rebalancing between January 8 and 14, an event expected to trigger large-scale passive fund position adjustments. Market analysis indicates that the scale of futures selling triggered by this rebalancing is expected to be considerable, accounting for 9% and 3% of total positions in silver and gold respectively. This mechanical adjustment at the capital level is having a direct and significant suppressive effect on short-term market sentiment and price trends.

The core market movements are as follows:

Dow futures up 0.08%, S&P 500 futures down 0.09%, Nasdaq 100 futures down over 0.2%

Euro Stoxx 50 up 0.09%, FTSE 100 down 0.25%, CAC40 up 0.24%, DAX30 up 0.44%

Nikkei 225 closed down 1.1% at 51,961.98 points. TOPIX closed down 0.8% at 3,511.34 points. Seoul Composite Index up 0.6% at 4551.06 points.

10-year U.S. Treasury yield fell 2 basis points to 4.16%, 2-year UK gilt yield fell 3 basis points to 3.67%, lowest since August 2024.

U.S. Dollar Index was basically flat, yen rose 0.2% against the dollar to 156.35.

Spot silver fell 1.6% to $79.9/oz. Spot gold fell 0.75% to $4,461/oz. Spot palladium dropped over 4% to $1,740/oz; WTI crude oil fell 1.4% to $56.33/barrel.

Bitcoin fell 0.6% to $92,623.82,Ethereum fell 0.7% to $3,250.08

After the S&P and Dow hit new highs overnight, U.S. stock index futures temporarily lost upward momentum, with Nasdaq 100 futures down more than 0.2%. Investors are focusing on labor market data to be released this week.

Precious metals plunge ahead of Bloomberg Commodity Index (BCOM)’s annual rebalancing. Spot gold once fell below the $4,450/oz mark, and spot silver dropped over 3% intra-day.

This is one of the most important liquidity events in the global commodity market. According to the rules, the index will be adjusted from January 8 to 14, 2026, during which time the large passive funds tracking the index must mechanically adjust their positions to match the new weight allocations.

Market data shows this adjustment has imposed significant selling pressure on the precious metals segment. In addition to gold facing selling equivalent to 3% of total positions, the pressure on the silver market is even greater, with selling expected to reach as high as 9% of total positions. This "non-fundamental" sell-off triggered by index rules has forced speculative funds that previously chased the rally to exit and wait on the sidelines before the event unfolds, thus exacerbating short-term price volatility.

Trump announced that Venezuela will deliver 30 million to 50 million barrels of oil to the U.S., sparking market concerns about increased supply and driving down WTI crude oil prices.

According to CCTV News, on January 6 local time, U.S. President Trump announced that the interim government of Venezuela will transfer 30 million to 50 million barrels of oil to the U.S. This oil will be sold at market prices, with the proceeds overseen by Trump to ensure the funds are used to "benefit the people of Venezuela and the United States."

Wallstreetcn previously mentioned that Goldman Sachs analysis believes that although short-term supply prospects are full of uncertainty, in the long term, a potential recovery in Venezuelan oil production will exert significant downward pressure on global oil prices.

Risk Disclaimer and Exemption ClauseThe market has risks, investment should be cautious. This article does not constitute personal investment advice and does not take into account individual users' specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. If you invest based on this, you do so at your own risk.