Trump returns with billion-dollar promises from the Gulf
While markets were tensely monitoring the dynamics of trade agreements, former US President Donald Trump was on a visit to the Gulf states. The key result of the trip was Saudi Arabias pledge to invest around $600 billion, which immediately caused excitement in investment circles.
Artificial intelligence marches to the Middle East
American tech giants received an additional boost from new agreements concerning artificial intelligence projects. The deals, initiated by the US administration and announced on Tuesday, demonstrate the Middle East growing interest in digital innovation and a close tech partnership with America.
Tariff easing boosts stocks
Investors also reacted positively to other recent developments: the 90-day delay in new tariffs announced by the US on April 9 (excluding China), as well as a limited but symbolically important trade agreement between the US and the UK. All of this created a favorable backdrop for the rise in stock prices.
Fed: Inflation is falling, but there is no clarity
Fed Vice Chairman Philip Jefferson noted on Wednesday that inflation indicators have begun to show progress toward the 2% target. However, according to him, further developments raise questions - the forecasts have become less clear.
Tariffs and statistics: not everything is so clear-cut
In turn, the head of the Federal Reserve Bank of Chicago, Austan Goolsbee, said that the statistics do not yet allow us to draw conclusions about the impact of new tariffs, which means more time and analysis are needed.
Powell prepares for a key speech
Now the attention of investors is riveted on Fed Chairman Jerome Powell, who will make a statement on Thursday. His words may shed light on the regulators plans regarding the further course of monetary policy. Analysts will be especially attentive to whether there are signs of easing in the Feds approach to rates.
Leaders and outsiders: how is Wall Street doing
American stock markets ended trading with mixed results: some sectors confidently added, while others noticeably sagged. The fall of pharmaceutical giants, which put pressure on the Dow Jones index, was especially noticeable.
Pharmaceuticals are dragging down
Merck & Co. shares fell 4%, while Amgen ended the day down 3%. These losses made both manufacturers among the biggest losers of the day, which affected the overall investor sentiment and the dynamics of blue chips.
Indices: mixed movement
Here is how trading ended on the main US stock exchanges:
- Dow Jones Industrial Average (.DJI)
-89.37 points (-0.21%) — 42,051.06 points
The main pressure is on the healthcare and pharmaceutical sector.
- S&P 500 (.SPX)
+6.03 points (+0.10%) — 5,892.58 points
Growth continues for the sixth day in a row, but there are still about 4% to go before the historical maximum.
- Nasdaq Composite (.IXIC)
+136.72 points (+0.72%) — 19,146.81 points
The main driver is the technology sector.
Sectors: who is in the plus, who is in the minus
Most industry segments ended the session in the minus — eight out of eleven showed a decline. Particularly weak were:
- Healthcare (.SPXHC)
A fall of 2.31% — the worst result among all sectors.
- Materials (.SPLRCM)
A decline of 0.96%, also among the laggards
But there were also those who confidently moved up:
- Communications Services (.SPLRCL)
A growth of 1.6% — the best result among all sectors.
- Technology (.SPLRCT)
A rise of 0.96%, which supported the Nasdaq.
Technology at the forefront of growth
Companies with the largest capitalizations were again among the market leaders. High-tech giants showed themselves especially brightly: Nvidia added over 4%, strengthening its position as the main growth driver in the S&P 500 index.
Advanced Micro Devices (AMD) confidently followed. Shares of the semiconductor manufacturer rose by 4.7% - against the backdrop of positive news about the launch of a share buyback worth $ 6 billion. Investors perceived this decision as a signal of management confidence in the companys stability.
Qatar and Boeing: A Deal on a High Note
Boeing shares rose 0.6% after a major deal struck during Donald Trump's visit to Doha. Qatar Airways signed a contract to supply the American manufacturer with aircraft, strengthening Boeing position on the international stage.
American Eagle under pressure
Not all market participants ended the day on a positive note. American Eagle Outfitters fell 6.4% after the retailer withdrew its full-year profit forecast. The company cited economic risks, primarily related to tariff uncertainty, which continues to hold back consumer activity.
Gold loses its shine
Gold prices fell to their lowest in more than a month, as a temporary warming in relations between the United States and China reduced investor interest in safe haven assets. Signals of a possible easing of trade tensions increased risk appetite and shifted focus to higher-yielding instruments.
Global markets are rising, with an eye on Europe
Globally, stock markets continued to rise. MSCI main index of global stocks rose 2.04 points, or 0.23%, to 873.24. Investor optimism is fueled by a decline in trade war concerns.
However, European stock exchanges took a break: the pan-European STOXX 600 index ended the day down 0.24%, recording its first fall after five days of gains. Analysts attribute this to profit-taking and expectations of new signals from global central banks and politicians.
Inflation below forecast: temporary relief for Wall Street
The publication of US consumer price statistics on Tuesday brought a brief respite to the markets. The data showed that inflation was below expectations, which partly relieved the tension caused by concerns about tariff policy and its potential impact on the monetary rate.
While overall anxiety has eased, investors are still weighing risks, especially amid expectations of higher inflation in the future if Washington continues to raise rates on imported goods.
Fed: Pause before next policy action
The Federal Reserve continues to tread carefully. Amid growing uncertainty over tariffs, the regulator has made it clear that it does not intend to rush to cut rates. Chairman Jerome Powell is scheduled to speak on Thursday, and the market is eagerly awaiting hints on the future direction of policy.
Deputy Fed Chairman Philip Jefferson emphasized in his speech on Wednesday that current inflation trends remain in line with the 2% target, but added that the outlook is complicated by the possible impact of new tariffs.
Dollar Strengthens Amid Uncertainty
On the currency market, the American currency continued to rise confidently. The dollar index added 0.14% against a basket of key currencies, including the euro and the yen. Despite political risks and economic turbulence, investors are increasingly turning to the dollar as a hedge against global instability.
Interest in the dollar remains low among major players
However, in May, the worlds leading fund managers maintained their lowest interest in the dollar in 19 years, according to data from the Fund Manager Survey from Bank of America. According to respondents, the Trump administrations trade policy has reduced the attractiveness of American assets, especially in the long term.
The euro and the pound are losing ground on the currency market
Amid ongoing geopolitical and trade turbulence, European currencies continued to weaken. The euro fell by 0.15%, reaching $1.1167, while the British pound lost 0.38%, falling to $1.3253. Investors remain cautious, trying to minimize risks amid unstable external economic signals.
US Treasury Yields Rise on Fiscal Expectations
The US government debt market responded with yields rising, reflecting investor expectations ahead of new macroeconomic data. Attention is also focused on the budget deficit debate in Congress, the outcome of which could determine the long-term trajectory of US government finances.
The Eurozone Remains Steady as Tensions Ease
While overseas markets are playing out future fiscal risks, the European debt curve remains calm. Eurozone bond yields have settled at multi-week highs amid signals of a possible easing of the global trade confrontation.
Oil under pressure: Rising inventories are pushing prices down
Oil prices fell after data showed that commercial crude inventories in the United States rose, which increased fears of a possible supply glut.
- Brent fell by 54 cents (-0.81%) to $66.09 per barrel;
- WTI lost 52 cents (-0.82%), trading at $63.15 per barrel.
Analysts note that the market is waiting for new demand forecasts, especially from China and India.
Gold is losing ground: investors are leaving safe havens
Stock markets have become more active, and this has sharply reduced interest in gold as a "safe haven". US gold futures fell 1.8% to $3,188.3, while spot prices fell even further, by 2.07%, to $3,180.07 per ounce.
Asia: Contrasting investor sentiment
Asia is seeing mixed dynamics. The MSCI Asia-Pacific excluding Japan index rose 1.56% to close at 614.33, indicating rising risk appetite.
Meanwhile, Japans Nikkei showed a moderate decline of -55.13 points (-0.14%), closing at 38,128.13.
Meanwhile, Hong Kongs Hang Seng confidently went up, demonstrating noticeable growth amid a local recovery in the technology and real estate sectors.
