US Stocks Push Higher on Tariff Update – Nasdaq Up 0.5%
All three major US indices closed the final trading day of the week higher on Friday after President Trump indicated that some tariffs may be lighter than previously expected. The Dow and S&P both edged up 0.08% on the day, while the tech-heavy Nasdaq recorded a 0.52% gain. The dollar strengthened against all major currencies, with the DXY adding 0.3% to move up to 104.09. Treasury yields had a mixed session, with the 2-year yield losing 1.6 basis points to drop to 3.948%, while the 10-year yield added 0.9 basis points to 4.246%. Oil prices rose again as supply concerns continued to weigh on markets, with Brent up 0.22% to $72.16 and WTI up 0.31% to $68.28. Gold saw some profit-taking in line with the stronger dollar, dropping 0.74% on the day to close at $3,023.46 an ounce.
Pivotal Week Ahead for the Dollar
It could be a pivotal week ahead for the dollar as the FX market digests fresh data, including key inflation figures, and navigates further tariff updates and their potential impact on global trade. The DXY has dropped over 6% in the past couple of months as markets have reassessed the potential global trade war triggered by President Trump’s tariff plans. However, it appears to have found support just above the 103.00 level and has spent the last few days recovering some losses, now sitting just above 104.00 as we enter the new trading week. While no major central bank rate decisions are scheduled, important data releases—including CPI figures from the UK and Australia, as well as the US Core PCE—are due. Additional tariff updates could also influence sentiment, leaving the DXY with the potential to either climb back into recent ranges or challenge last week’s lows once again.
PMI Data in Focus for Markets Today
A raft of Purchasing Managers’ Index (PMI) data is due from across the globe today, and investors will be monitoring updates closely to assess how firms are coping with increasing global trade concerns. The Asian session kicks off with Australian data, followed by Flash Services and Manufacturing updates from France, Germany, the EU, the UK, and the US over the next two trading sessions. Later in the New York session, we will also hear from our first central bank speakers of the week, with remarks from the Fed’s Raphael Bostic and Bank of England Governor Andrew Bailey.
