The week in global financial markets was marked by contrasting developments: a reduction in tariffs between the U.S. and China brought optimism, while the U.S. credit rating downgrade raised concerns.
Equities Overview
Equity markets responded positively to the tariff agreement between the U.S. and China. The S&P 500 surged 5.3%, closing at 5,958.38, while the Nasdaq Composite jumped 7.2%. Big Tech stocks led the rally, with Nvidia rising ~16%, Meta 8%, Apple 6%, and Microsoft 3%.
Commodities Trends
In commodities, gold fell 4%, marking its worst weekly performance since November, as risk appetite returned to equities. Copper markets were highly volatile, with CME inventories reaching an eight-year high due to tariff concerns.
Global Events and Macro Trends
The University of Michigan's consumer sentiment index dropped to 50.8, reflecting significant anxiety. The U.S. and China reached a 90-day tariff reduction agreement, providing temporary relief.
The juxtaposition of positive trade news and fiscal stability concerns creates a complex situation for investors. Short-term opportunities may compete with long-term risks.
