US stockmarkets in the reds
Major US stock market indexes like S&P 500, Nasdaq and Dow Jones ended Monday in the reds. Market worries for the size of AI investments by US tech companies, but also the role of AI technology tend to enhance market worries. Yet we also highlight the release of NVIDIA’s earnings report tomorrow in the after market hours. Given the market’s perception that NVIDIA is in the heart of AI, the release could have a wider effect across the US tech sector.
Xlence Research Team opinion
Should we see market uncertainty being enhanced further, we may see US stock markets suffering further losses, while a possible improvement of the market sentiment could allow US equities markets to advance higher.
The upending of Trump’s tariffs seems to support the USD
On Friday the US Supreme Court ruled that the tariff policies enforced by US President Trump, by invoking the International Emergency Economic Powers Act, were unconstitutional, practically cancelling the US Government’s tariff strategy. Yet US President Trump almost immediately called for a new US tariffs of `0% on all products entering US soil, while the White House is still working on raising the tariffs to 15%. There is still a wide degree of confusion in the FX market as there is wide uncertainty regarding global trade.
Xlence Research Team opinion
For the time being the uncertainty in the FX market seems to be providing support for the USD, and should we see the uncertainty in the markets being further enhanced from Trump’s tariff intentions, we may see the USD getting more support and vice versa.
Oil prices continue to edge higher
Oil prices continued to rise as the week began and on a fundamental level, the escalation of tensions in the US-Iranian relationships tends to create more support for oil prices. The possibility of a US military strike, even an isolated warning incident, creates worries among oil market participants for the possible negative consequences in the supply side of the oil market.
Xlence Research Team opinion
We see the possibility of a US military action against Iran as increased and in such a case we may see oil prices rallying, while a possible thawing of tensions in the US-Iranian relationships could weigh on oil prices substantially as it could take the market by surprise.
Bitcoin edges lower on uncertainty
Bitcoin’s price action dropped below the $65k threshold yesterday, abandoning its past sideways motion, allowing for bearish tendencies to emerge. We view the market uncertainty as a fundamental reason that may induce institutional investors to divest from the cryptocurrency, which could cause a negative spiral for Bitcoin’s price.
Xlence Research Team opinion
Should we see market uncertainty intensifying further we may see Bitcoin’s price losing further ground as it is considered an asset of a riskier nature. On the flip side a possible improvement of the market sentiment may allow the cryptocurrency’s price action to recover some ground.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
