Market Overview - Page 8

Strong S&P 500 rally driven by optimism, FOMO, and robust earnings, despite low market correction and Middle East tensions.

Dollar at March lows as geopolitics fades. EURUSD rallies. 1970s parallels and USDJPY intervention risk add to greenback pressure. BoE's hawkish tone supports GBPUSD.

Tesla: ⬆️ Buy – Tesla broke down channels – Likely to rise to resistance level 400.00 Tesla continues to rise after breaking two different-length down channels from March and December – as can be seen from the daily Tesla chart.

Oil prices are high but markets ignore the scale of disruption. Hormuz flows fell from 20 to 3.8 million bpd, OPEC+ output down 9.4 million bpd. Investors are betting on de-escalation.

The dollar weakens on de-escalation. EURUSD rallies on risk appetite and Fed/ECB policy divergence. Yen remains under pressure amid the Bank of Japan’s dovish turn.

Despite geopolitical tensions and high market volatility, the S&P 500 rose on expectations of strong earnings and the resilience of the US economy, with shares becoming more attractive following the March correction.

Markets are moving past geopolitics: S&P 500 and EURUSD are back to pre-war levels. Speculators are unwinding dollar longs. Gold recovers alongside equities.

US-Iran talks failed to end the conflict — dollar gapped higher to open the week. Gold slid from $4.750. A prolonged conflict raises the risk of inflation surging and the Fed hiking rates.

Gold has recovered from its March slump, but the bear market persists due to deteriorating macroeconomic conditions and inflationary risks.

The markets’ attention will, of course, be focused on the US-Iran talks. Donald Trump claims a total victory for the Americans and is demanding a windfall in the form of substantial sums of money. This is likely to be in.

Dollar steadies as oil finds support. EURUSD rally looks premature — US inflation data may push the pair lower. Gold benefits from the long-term erosion of dollar reserve status.

The Fed is pushing back the prospect of rate cuts, thereby supporting the dollar. Gold risks repeating the prolonged downtrend seen in the 1980s and 1990s.