U.S. equities advanced during the week, supported by several reports indicating that the ongoing trade tensions between the U.S. and China could be de-escalating. Speculation around near-term agreements with several other trading partners also appeared to be a tailwind, as were comments from President Donald Trump that appeared to walk back his recent threat to fire Federal Reserve Chair Jerome Powell. Some better-than-expected corporate earnings releases during the week also seemed to be a driver of positive sentiment. According to data from FactSet, 73% of the companies that had reported first-quarter results through Friday morning had beaten consensus earnings expectations. The Nasdaq led the rally, up 4 days in a row (including 3 days gaining more than 2% in a row - the most since 2001). The Nasdaq's 6% gain was the 2nd best week since November 2023. Nasdaq's rally brought it within 1% of erasing all the post-Liberation-Day gains. The STOXX Europe 600 Index and the Nikkei 225 both ended 2.8% higher. In fixed income, US Treasury yields were all lower this week (from Thursday's close) with the long-end outperforming. After 3 straight weeks lower, the dollar managed very modest gains on the week (rallying back from weakness early in the week). Oil prices ended the week unchanged with WTI finding support at $62. Gold 'suffered' only its 3rd down week of the year (losing 0.5%), after tagging $3500 record highs mid-week. Bitcoin topped $95,000 today for the first time since February.
Have a great week-end
Charles for the team