Market developments
Equities: Global stock markets experienced volatility this week, driven by U.S.-China trade tensions and Federal Reserve Chair Jerome Powell’s comments on tariffs and economic growth. U.S. indices like the Dow, S&P 500 and Nasdaq dipped slightly on Tuesday but faced sharper declines Wednesday after Powell signaled no immediate interest rate cuts. Tech stocks like Nvidia and AMD were hit hard by U.S. chip export restrictions to China. Bank of America and Citigroup shares rose after reporting better-than-expected Q1 earnings, boosted by strong trading revenues. However, the S&P 500 remains down about 10% year-to-date, reflecting ongoing tariff-related uncertainty.
Fixed Income: U.S. Treasury bonds rebounded slightly after a turbulent week, as markets adjusted to tariff relief hopes and Powell’s remarks suggesting the Fed is in a wait-and-see mode. A sell-off in U.S. Treasuries earlier raised concerns about waning long-term confidence in the U.S. economy, with investors demanding higher yields to compensate for perceived risks.
Commodities: Crude oil futures rose after U.S. sanctions on Chinese importers of Iranian oil sparked global supply concerns, lifting oil and gas stocks. Gold futures climbed, reflecting its safe-haven appeal amid geopolitical and financial uncertainties, though buying momentum showed signs of easing.