Week 8 trading news roundup
By Paul Reid
The financial markets are maintaining an overall bullish sentiment, despite economists being divided on the rollover effects of Trump Tariffs. Let’s take a big picture view of what happened this week and speculate on what’s coming next week.
S&P 500 and equity markets
The S&P 500 (US500) notched another record high, despite lingering concerns from the Federal Reserve minutes. The market's ability to shake off fears about a lack of immediate rate cuts suggests a growing risk appetite, which could continue pushing equity indices higher. However, any unexpected hawkish rhetoric from the Fed in the coming days could trigger a reversal. Traders should keep an eye on US stock indices, particularly the S&P 500 and Nasdaq, as well as forex pairs tied to the dollar. A continued rally in equities could weaken safe-haven demand for USD, while a sudden correction might strengthen it as traders seek safety.
Geopolitical risks and forex impact
Geopolitical risks and tariff concerns have led to mixed equity performance, which could spill over into forex markets. The People's Bank of China’s decision on interest rates will be a key driver for CNY pairs. A dovish stance from China could weaken the yuan, boosting USDCNH, while any aggressive intervention might trigger risk-on sentiment, pushing commodity currencies like AUD and NZD higher. Meanwhile, Trump’s proposed 25% auto tariffs could weigh on stocks like Ford, while Tesla, which has no imports affected by the move, could outperform. This trade war narrative will likely impact the US dollar, especially against the euro and yen, as investors digest its broader economic implications.
Commodities: Gold and Oil
Commodities have been in the spotlight, with gold remaining above the $2,900 per ounce level and oil prices extending a three-day rally. Gold traders should watch for any signs of a stronger dollar, which could pressure the metal lower, while renewed economic uncertainty could send prices higher. Oil markets are being driven by a combination of US fuel stock drawdowns and fears of Russian supply disruptions. If crude continues its upward momentum, expect Brent and WTI to remain volatile, creating opportunities for short-term trades. A larger-than-expected crude inventory build next week could dampen prices, while ongoing geopolitical tensions could send oil higher.
Tech and AI stocks
The AI and tech sectors continue to dominate stock headlines, with Tesla's anticipated full autonomous driving launch in June 2025 attracting attention. While Tesla shares have seen some pressure recently, a strong push toward autonomy could ignite a fresh rally, lifting tech indices along with it. Meanwhile, C3.ai’s struggles highlight the fragility of AI-related stocks, which could remain volatile depending on earnings results and broader sentiment toward the sector.
Interest Rates and Forex Trends
Forex traders should also pay close attention to the Fed minutes and their continued impact on rate expectations. The lack of urgency for rate cuts could keep the US dollar resilient, but any signs of economic slowdown or shifting inflation expectations could bring renewed speculation about easing later in the year. EURUSD and GBPUSD will likely be the most reactive pairs, with the latter also facing domestic economic pressures that could drive further fluctuations.
Conclusion
Looking ahead, traders will need to balance technical setups with fundamental drivers. The interplay between risk sentiment, central bank decisions, and geopolitical developments will be critical in shaping the market’s next moves. Whether it’s equities, forex, commodities, or crypto, the coming week offers plenty of opportunities for traders.
As always, keep your finger on the market pulse with the Exness Trade app. And when checking trading news sites, scan the headlines before digging deeper to get a feel for market sentiment influences. When reports and stories go viral, they can affect the market prices, although not in a lasting way.
When sentiment and fundamentals align, opportunities follow. And as always, if you are exploring new assets or trading strategies, experiment with the Exness risk-free demo account and only when you have a measure of the current and past price ranges should you switch to real funds. But don’t over analyse, all you’ll miss out.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Author:
Paul Reid
Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.