US Stocks Hit Fresh Records – Dow up 0.4%
US stocks pushed higher again in trading yesterday, albeit modestly, with the S&P and Nasdaq again recording all-time high closes. The Dow led the way, closing up 0.43%, followed by the S&P, which added 0.27%, and the Nasdaq, which edged just 0.09% higher but still hit a record level. US Treasury yields also moved up after US unemployment claims data dipped, the 2-year rising 3 basis points to 3.872% and the 10-year adding 1.8 basis points to move to 4.350%. The dollar was mixed across the majors, with the DXY edging up just 0.04% to 97.59. Oil prices saw big moves on the day as the market reacted to tariff threats from the US, Brent dropping 1.91% to $68.85 and WTI losing 2.22% to $66.86 a barrel. Gold had another relatively quiet day, remaining in recent ranges but ultimately closing up 0.31% at $3,323.84 an ounce.
Traders Wary of Tariff Impacts on Markets
Traders are becoming increasingly wary of the lack of real impact on markets from President Trump’s tariff plans, and many feel that there could be some harsh corrections about to hit what have so far been very resilient markets. Stock markets rebounded strongly in April after the initial reciprocal tariff announcement on “Liberation Day,” and once again major indices are hitting all-time highs. However, there is a growing concern in the market that at some point we will have to factor in the effect that tariffs will have on global trade and what it means for company valuations. Analysts will be looking closely at data in the coming weeks and months for any signs of slowing economies, and traders are expecting to see volatility spike if a significant repricing looks to be taking shape.
Geopolitics Remain in Focus into the Weekend
Geopolitics will remain in focus for traders as we enter the last three trading sessions of the week and investors look ahead to a key US reporting season in the coming weeks. Tariff updates and threats from the US did little to halt overall sentiment yesterday, with mainly localized reactions, but traders remain wary of further fallout. There is little on the economic calendar in the Asian session today, and the market is expected to pick up from a positive day on Wall Street. The London session will see the early focus on UK markets with a big data drop scheduled shortly after the open; the GDP data (exp +0.1% m/m) will be the highlight, with moves expected on any significant deviation. The New York session will see the initial focus north of the border for Canadian employment data, with the Employment Change expected to show just a 0.9k increase, while the Unemployment Rate is expected to increase to 7.1%.
