US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
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The S&P 500 surged Friday, led by tech stocks, but still marked its fourth straight weekly loss amid trade war concerns and a sharp drop in consumer sentiment. The Dow Jones gained 674 points (1.7%), the S&P 500 rose 2%, and the NASDAQ climbed 2.6%.
NVIDIA (NASDAQ: NVDA) jumped over 5%, aiming to break a three-week losing streak. Ulta Beauty (NASDAQ: ULTA) soared 13% on strong Q4 results, while Semtech (NASDAQ: SMTC) surged 21% after upbeat Q1 guidance.
Consumer sentiment plunged to its lowest level since November 2022, with the University of Michigan’s index dropping to 57.9 from 64.7, well below expectations. Inflation fears intensified as one-year inflation expectations spiked to 4.9%, marking three consecutive months of sharp increases. Long-term inflation expectations also jumped to 3.9%, the biggest monthly rise since 1993.
Trade war concerns escalated after former President Donald Trump threatened a 200% tariff on European alcoholic beverages, retaliating against the EU’s 50% tariff on American whiskey. Investors worry this could fuel inflation and slow economic growth.
Meanwhile, a government shutdown appears to have been averted as Senate Democratic Leader Chuck Schumer backed a Republican-crafted funding bill.
Tesla (NASDAQ: TSLA) rose 3.9% after reports it plans to launch a more affordable Model Y in China to defend its market share. The EV giant has faced challenges, including a 30% stock decline this month, backlash over Elon Musk’s Dogecoin involvement, and protests at dealerships. Concerns also persist over trade war-related tariffs impacting Tesla’s business.
With inflation worries mounting, Federal Reserve hawkishness, and trade tensions intensifying, market volatility is expected to remain high.
