ORLANDO, Florida, June 3 : Escalating tensions in the Middle East and a wave of profit-taking in AI and tech shares cast a long shadow over markets on Wednesday, depressing the price of stocks and bonds while lifting the dollar and oil.

In my column today, I look at why Japan may be "in the money" from its FX interventions. This runs counter to the view that the yen's slide back to previous intervention levels means Tokyo's efforts to support its currency have been in vain.

If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.

1. When IPOs go wrong: SpaceX, AI firms face a delicate process

2. U.S. stock options watchers warn Wall Street's rally 'ripe for volatility spasms'

3. Wild stock moves beneath an eerily calm surface: Mike Dolan

4. AI building boom ripples through inflation-hit Treasury market

5. U.S. cites forced labor concerns as grounds for new tariffs

Today's Key Market Moves

• STOCKS: Japan's Nikkei +2.5 per cent to new high, Brazil -2 per cent, Dow -1.2 per cent, Nasdaq -0.9 per cent.

• SECTORS/SHARES: Seven sectors on the S&P 500 fall, five rise. Tech -1.5 per cent, energy +1.4 per cent. IBM -7 per cent, Nvidia -4 per cent, Walmart +3.5 per cent. Broadcom hits record high then -7 per cent after the bell.

• FX: Dollar index posts highest U.S. close in two months. USD/JPY touches 160.00 "intervention zone" level. NZD and SEK both -1 per cent, biggest G10 movers.

• BONDS: U.S. yields +4 bps at short end, 2026 Fed hike probabilities rise.

• COMMODITIES/METALS: Oil +2 per cent, gold -1 per cent. Other precious metals down 3-5 per cent.

Today's Talking Points

* IP-Oh...

Trillion-dollar IPOs are the talk of the Street. SpaceX's upcoming IPO is expected to value the company at $1.75 trillion, while the Anthropic and OpenAI listings could value both at $1 trillion each. There is some doubt over the market's capacity to absorb the new equity supply, but we'll see how that pans out.

Recent history, however, suggests investors should be wary of chasing big IPOs. Sam Grelck at Truist Advisory Services notes a highly mixed record in the weeks, months and year after major U.S. listings, while every one recorded at least one hefty drawdown in the 12 months after.

* In the zone

The yen dipped below 160 per dollar on Wednesday, breaching the unofficial thres...