’Fasten your seatbelts’— BTIG strategists warn of coming turbulence
Global markets ended the week mixed as investors balanced diverging US Federal Reserve signals and escalating geopolitical risks. The S&P 500 dropped 0.20%, recording its third consecutive loss, while the Nasdaq fell 0.50%. In contrast, the Dow gained 35 points. Fed Governor Waller hinted at possible rate cuts starting in July, clashing with Chair Powell’s more measured, data-led approach. Semiconductor stocks like Nvidia (NASDAQ:NVDA) and TSMC (NYSE:TSM) fell over 1% on concerns that the US may tighten export controls, threatening chip supply chains.
Geopolitical uncertainty heightened after President Trump postponed a decision on US involvement in the Israel-Iran conflict, while Israel intensified its military strikes. This delay offered temporary relief, lifting the South African rand 0.20% to R18/$, with investors eyeing upcoming domestic inflation and economic indicators. The JSE Top 40 remained flat, despite notable losses in mining and energy stocks.
In Europe, the STOXX 50 and STOXX 600 rose 0.60% and 0.10% respectively, snapping a three-day losing streak. In Asia, Hong Kong’s Hang Seng jumped 1.30% after China’s central bank kept key interest rates steady, and amid US efforts to cool speculation around direct involvement in the Middle East conflict.
Meanwhile, Brent crude slid 2.30% to $77 a barrel, despite marking a third weekly gain, as Trump’s delay signalled potential diplomatic progress. Gold dipped to a one-week low around $3,350/oz as investors sold off to cover losses elsewhere amid mounting regional tensions.
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