Wall Street opened Friday in a cautious but positive mood amid news of President Trump's nomination of Stephen Miran to the Federal Reserve.
Markets React to Tariffs and Commodity Surges
Trump's tariff push didn’t just target traditional imports; it also hit gold. The U.S. announced duties on imports of 1-kilogram gold bars, sending New York gold futures to record highs and creating a rare price gap with London’s spot market. Meanwhile, oil prices slid for a seventh straight session, their worst streak since 2021, as traders worried about global supply shifts and U.S. penalties on India for buying Russian crude.
Tracking the Fed's Next Moves
While many on Wall Street expect the Fed to cut rates in September, some economists aren’t convinced. Inflation remains above the central bank’s target, and skeptics warn that cutting too soon could backfire. Trump's nomination adds a political twist, increasing the odds of a dovish tilt in upcoming meetings. Still, the decision could hinge on incoming jobs data, which has recently shown signs of weakness.
Gold and Oil Reflect Market Anxiety
Gold’s surge reflects a growing appetite for safe-haven assets as political and economic uncertainty builds. The tariff-driven jump in U.S. gold futures also hints at supply chain disruptions that could persist. Oil tells a different story: instead of rallying on geopolitical risk, it has slumped as traders bet that diplomatic efforts could ease tensions in Ukraine and alter demand patterns.
With Trump’s tariffs in full effect, a potential Fed shake-up in motion, and commodities moving in opposite directions, Wall Street is bracing for more volatility.
