If a genuine unwinding gets underway, there is a long way to go on the downside. But it is too soon to declare that. Yes, volatility bulls were unable to cling on to the weekly highs, but there are several layers of defendable support underneath.
Wall Street ended the week on a strong note, with major indices posting their best weekly performance in years, as traders appeared confident that the escalation in the U.S.-China trade war — which led to triple-digit tariff increases on both sides — would be resolved in the near term.
US treasury market remains unsettled as inflation reports fail to calm yields, fueling speculation of Fed policy changes. PPI drops 0.4% in Mar, largest since 2023. Despite cooling inflation, yields rise and bond market remains skeptical. Tariffs may be distorting data.
Wall Street saw a tentative tech rebound early Wednesday, as investors begin to shrug off escalating U.S.-China trade tensions following a steep market selloff.
U.S. assets were once a staple in global investment portfolios, but escalating trade tensions have shattered investor confidence, causing a rare bond selloff and raising concerns about the safety of American assets.
The price of gold extended its losses on Friday and plunged to a seven-day low of $3,015 before the yellow metal recovered some ground after a speech by Jerome Powell. His speech indicated that inflation could reaccelerate due to tariffs.
The market fell by 9% this week, which was the worst weekly drop since the height of the COVID-19 pandemic. The trade “solution” was a disaster. If left unchecked, this has the potential to do some real damage.
