Weekly Market Summary: U.S.-China, Gold Rises, and Volatile Stocks

Weekly Market Summary: U.S.-China, Gold Rises, and Volatile Stocks

Wall Street closes Slightly Lower ahead of U.S.-China Trade Negotiations

Performance of the Dow Jones, S&P 500, and Nasdaq

• U.S. financial markets ended the week on a cautious note as investors awaited the outcome of upcoming trade talks between the United States and China. Dow Jones Industrial Average fell 0.29% to close at 41,249.38.
• S&P 500 edged down 0.07% to 5,659.91.
• Nasdaq Composite was virtually flat, ending the session at 17,928.92.

These moves reflect investor hesitation as they await concrete results from the bilateral negotiations set to take place in Switzerland over the weekend.

Expectations surrounding the proposed 80% tariff

One of the main sources of tension was President Donald Trump’s proposal to impose an 80% tariff on Chinese imports, a sharp decrease from the current 145%, but still significantly high. The administration suggested this could be a temporary pressure tactic rather than a long-term policy.

Previous reports had speculated that tariffs could drop below 60%, and the higher-than-expected figure triggered renewed stock market volatility. Trump posted on social media that “80% seems right,” sparking mixed interpretations across the markets.

Analyst outlook amid volatility

Market analysts suggest that investors are navigating a news-driven cycle with a high degree of sensitivity to trade headlines. According to Mark Hackett, Chief Investment Strategist at Nationwide, “we are likely in a sideways period of volatility until we begin to get tangible outcomes.”

For the week, the S&P 500 dropped by about 0.5%, the Nasdaq fell 0.3%, and the Dow declined roughly 0.2%, signaling a defensive market tone amid global uncertainty.

Europe and Asia show moderate optimism

European markets boosted by U.S.-U.K. trade agreement

While Wall Street ended on a cautious note, European markets posted gains on Friday, buoyed by the announcement of a preliminary trade deal between the U.S. and the United Kingdom.

• Stoxx Europe 600 rose 0.44%.
• U.K.’s FTSE 100 added 0.27%.
• Germany’s DAX (GER40) gained 0.63% to close at a record high of 23,499.3 points.

These movements reflect a degree of optimism that recent trade policy decisions could pave the way for renewed international cooperation—despite ongoing friction over U.S. tariffs on Chinese goods.

Mixed reaction in Asian markets

In Asia, the picture was more nuanced. Investors digested China’s April trade data, which showed a stronger-than-expected rise in exports despite the intensifying pressure from U.S. tariffs. Imports continued to decline, though at a slower pace, as Beijing ramped up domestic stimulus measures.

This data was interpreted as a sign of economic resilience from China, which helped stabilize market sentiment ahead of high-stakes negotiations with U.S. officials.

Key remarks from top officials

U.S. Treasury Secretary Scott Bessent emphasized that the weekend’s meeting with Chinese counterparts in Switzerland was aimed at “de-escalation,” rather than securing a sweeping trade agreement. Accompanied by Trade Representative Jamieson Greer, Bessent framed the event as an early step in a longer process to normalize trade relations.

The contrast between Bessent’s diplomatic tone and President Trump’s aggressive messaging created mixed signals for investors, who remain torn between cautious optimism and skepticism about meaningful policy breakthroughs.

Gold and Precious Metals surge amid Dollar Weakness

Gold rises on trade tensions and geopolitical risk

Gold prices surged by 1.1% on Friday, reaching $3,340.29 per ounce, as the U.S. dollar weakened and investors weighed the implications of U.S.-China trade tensions. For the week, gold posted a solid 3.1% gain, reaffirming its role as a safe-haven asset during global uncertainty.

A key driver behind the rally was President Trump’s proposal of an 80% tariff on Chinese goods, which revived fears of a prolonged trade war. The dollar fell by 0.3%, making gold cheaper for international buyers and amplifying demand.

Geopolitical instability also played a role. India and Pakistan exchanged accusations of cross-border drone and artillery attacks, marking the worst flare-up between the nuclear neighbors in nearly 30 years.

Inflation fears and monetary policy outlook

Another factor lifting gold was growing concern that Trump’s trade policy could lead to higher inflation, slower growth, and rising unemployment. Federal Reserve Governor Michael Barr warned that such conditions would put the Fed in a difficult position regarding interest rate decisions.

In this context, gold benefited from its reputation as a hedge against inflation and monetary instability, especially as analysts speculate the central bank may adopt a more cautious stance moving forward.

Silver, platinum, and palladium also gain

The upward momentum extended beyond gold.

• Silver rose 0.8% to $32.75 an ounce.
• Platinum climbed 2% to $995.10.
• Palladium edged up 0.2% to $977.68.

These gains were supported by both industrial demand and geopolitical uncertainty.

Physical demand for gold was also notable in China, where post-holiday buying picked up. In contrast, Indian jewelers offered discounts as a weakening rupee pushed local prices near record highs, dampening domestic demand.

Oil Rises: Between Trade Optimism and Geopolitical Risk

Weekly gains for Brent and WTI

Oil prices closed higher on Friday, marking their first weekly gain since mid-April, as investor optimism grew ahead of upcoming U.S.-China trade talks and following a newly signed deal between the United States and the United Kingdom. Brent crude rose 1.7% to $63.91 per barrel, while U.S. West Texas Intermediate (WTI) climbed 1.9% to $61.02. Week-over-week, both benchmarks posted gains of over 4%.

The rally signals a shift in sentiment in energy markets, which had been weighed down by concerns over global economic stagnation and structural oversupply.

OPEC production and Middle East tensions

Oil prices were further supported by an unexpected decline in OPEC production during April. According to a Reuters survey, drops in output from Libya, Venezuela, and Iraq more than offset planned increases, tightening supply and adding bullish pressure to the market.

Meanwhile, tensions in the Middle East added a geopolitical risk premium. Israel intercepted a missile launched from Yemen, just days after Oman attempted to mediate a ceasefire between the U.S. and Yemen’s Houthi rebels. The incident heightened concerns about energy infrastructure security in a volatile region.

Sanctions on Chinese refineries and global supply risks

The U.S. government also imposed sanctions on a third independent Chinese oil refinery for purchasing Iranian crude, adding a layer of uncertainty to the global supply outlook. Although the immediate impact was limited, the move could disrupt international trade flows and complicate ongoing negotiations with Beijing.

The future trajectory of oil prices will depend largely on the U.S. economic outlook, the direction of its trade policies, and the enforcement of sanctions against Iran and Russia.

Tech Stocks and Standout Performers of the Week

Trade Desk, Snowflake, Cloudflare, and Nvidia lead the gains

The technology sector saw notable movement this week, with several companies delivering strong results and others facing pressure. Trade Desk (TTD) was a top performer, with its shares surging 26.5% after beating earnings expectations. Its AI-powered platform, Kokai, has been adopted by two-thirds of clients and is expected to reach full adoption by year-end, helping reduce operational costs and enhance client differentiation.

Snowflake (SNOW) extended its rally with seven consecutive days of gains, driven by strong customer retention and enterprise stability. Cloudflare (NET) reported $479 million in revenue, exceeding expectations thanks to key contracts in cybersecurity and artificial intelligence, resulting in an 11% pre-market gain.

Another key player was Nvidia (NVDA), which publicly supported the Trump administration’s move to revoke the AI Diffusion Rule. The company sees this policy shift as an opportunity for the U.S. to strengthen its leadership in AI, create high-paying jobs, and accelerate infrastructure development. While the full financial impact remains uncertain, analysts praised Nvidia’s alignment with new industrial policies.

Notable losses: Iovance, CrowdStrike, Akamai

Not all tech names had a positive week. Iovance Biotherapeutics (IOVA) plummeted 41% after missing revenue targets and cutting its full-year forecast due to production capacity issues.

CrowdStrike (CRWD) dropped 3% following reports of a federal investigation into a $32 million cybersecurity contract with Carahsoft and the IRS. Meanwhile, Akamai (AKAM) saw its shares fall 7% after releasing underwhelming earnings, though some analysts remain bullish on its long-term outlook.

AI, streaming, and corporate M&A trends

Beyond earnings, several firms made strategic announcements. Disney (DIS) confirmed the launch of a new sports streaming app, simply called “ESPN”, expected to cost $25 to $30 per month. The platform aims to centralize ESPN’s sports content and betting integrations into one subscription.

In the energy sector, BP became the target of takeover interest from giants like Shell (SHEL), Chevron (CVX), and Exxon Mobil (XOM). After a year of underperformance, activist investor Elliott Management is pushing for a potential sale or restructuring, citing the company’s undervalued assets as an opportunity for strategic repositioning.

Other market-moving headlines

Meta, Alphabet, and Coinbase make strategic moves

Several high-profile companies made announcements this week that could significantly impact the financial markets. Meta Platforms (META) appointed Robert Fergus to lead its Facebook AI Research lab, FAIR, as part of its renewed push into personalized AI models and memory-enhancing technologies, particularly around its Llama architecture.

Alphabet (GOOGL) is facing a €2.97 billion lawsuit from Italy’s Moltiply Group, accusing Google of abusing its dominant market position in Europe between 2010 and 2017. The legal action follows a European Court of Justice ruling that found Google had favored its own services. The company stated it is reviewing the claim and reaffirmed its 2017 changes were designed to comply with regulatory expectations.

In the crypto space, Coinbase (COIN) announced its acquisition of crypto options leader Deribit for $2.9 billion, solidifying its presence in the digital derivatives market. Despite a 19% quarter-over-quarter drop in transaction revenue, Coinbase outperformed the broader global spot market and demonstrated a forward-looking strategy.

WeightWatchers bankruptcy and the changing consumer

In a significant development symbolizing changing consumer behavior, WeightWatchers (WW) filed for Chapter 11 bankruptcy protection, citing financial pressures from the rise of GLP-1 weight-loss drugs and a shift toward holistic wellness solutions. The company plans to restructure $1.15 billion in debt and exit bankruptcy proceedings by late June.

This move reflects a broader trend where consumers are prioritizing flexible, science-backed solutions over traditional, restrictive dieting programs.

Trade policy and bilateral deals in motion

On the policy front, the new U.S.-U.K. trade agreement sparked both optimism and criticism. The American Automotive Policy Council warned that the deal could harm U.S. automakers such as Ford (F), General Motors (GM), and Stellantis (STLA), by making it cheaper to import British-made vehicles, potentially threatening domestic production and jobs.

Meanwhile, British Airways’ parent company, IAG, announced the purchase of 53 new long-haul aircraft from Boeing (BA) and Airbus, with deliveries scheduled between 2028 and 2033. The order is part of a broader fleet modernization strategy and comes amid the shifting landscape of transatlantic trade regulation.

Would You Like to Make Smarter Investment Decisions?

Join Our Investor Community

If you’re looking to stay informed about the latest trends in technology and artificial intelligence (AI) to improve your investment decisions, we invite you to subscribe to the Whale Analytics newsletter. By joining, you’ll receive:

• In-depth fundamental analysis to better understand market movements.
• Summaries of key news and relevant events that could impact your investments.
• Detailed market evaluations, perfect for any technology-driven investment strategy.

Staying informed and up to date is the first step toward success in the investment world. Subscribe today and join committed and proactive investors who, like you, are looking to make the best financial decisions.

Access now and unlock your full investment potential!

---