The U.S. Dollar Index rose early in the week but then fell, continuing to fluctuate around the 101 mark. At the start of the week, the dollar strengthened as a safe-haven asset amid Trump’s reinstatement of the maritime blockade against Iran and escalating tensions in the Middle East; subsequently, U.S. CPI and PPI figures came in below expectations, leading the market to scale back expectations for a Fed rate hike, causing the dollar to retreat.As of press time, the U.S. Dollar Index has rebounded slightly to around 100.8.
Gold trended lower this week. On Monday, driven by a stronger dollar, rising U.S. Treasury yields, and expectations of higher interest rates, it fell by more than $100 in a single day, breaking below the $4,000 mark; it then rebounded briefly as inflation data cooled, but fell below $4,000 again on Thursday.As of press time on Friday, spot gold was hovering near $3,985 per ounce.
Crude oil was the best-performing asset this week. After Trump announced the resumption of a maritime blockade against Iran, WTI and Brent crude rose nearly 9% in a single day.Subsequently, as the market continued to price in supply risks related to the Strait of Hormuz and the Strait of Mandeb, oil prices remained volatile at elevated levels.
U.S. stocks underwent a volatile correction this week, with the market caught in a tug-of-war between two major factors: “easing inflation reducing bets on rate hikes” and “geopolitical risks pushing up interest rate pressures.”Volatility intensified in tech stocks and the AI sector, with the Philadelphia Semiconductor Index on the verge of entering a bear market. On Friday, Apple replaced Nvidia as the world’s most valuable company, while SpaceX’s market capitalization has evaporated by nearly $1 trillion from its peak.