US Stocks Fall into the Weekend on Tariff Threats – Nasdaq down 1%
US stocks closed lower on Friday after President Trump threatened to push through 50% tariffs on the EU and on Apple if they did not make iPhones in the US. The EU deadline has since been extended to July 1, but investors fear that there could be more tariff updates to come. The Nasdaq led the way lower on Friday, closing down 1%, followed by the S&P and Dow, which lost 0.67% and 0.61% respectively. The dollar took a hit on the news, the DXY losing 0.77% to move down to 99.11, and Treasury yields eased in choppy markets, the 2-year flat at 3.991% and the 10-year ultimately losing 1.8 basis points to close at 4.511%. Oil prices pushed higher on news that talks between Iran and the US were not going well, Brent up 0.53% to $64.78 and WTI up 0.54% to $61.51, whilst the uncertainty across markets helped propel gold back to recent highs, up 1.83% on the day to close at $3,356.99 an ounce.
Gold Rallies to Long-Term Resistance on Tariff Comments
Gold prices leapt again on Friday after President Trump threatened more tariffs on the EU, as investors once again placed trades into haven products. Market participants had started to feel that tariff volatility was pulling back as the US engaged in negotiations with various trading partners, and investors were hoping for more good news on the horizon. But comments from the President knocked that, and gold raced higher again. It peaked near the long-term resistance on the daily chart, which came in around the $3,350 region, and traders will now be poised for more moves in the coming days. Any further escalation of trade concerns is likely to lead to a break higher, which could once again target the all-time high; or better news is likely to see it drop back into the range. Either way, it is unlikely that gold will remain trading at these levels for too long.
Quiet Calendar Day to Start the Trading Week
It looks like being a relatively quiet start to the trading week, with little on the event calendar to move markets and holidays in major centers that should see reduced volumes. There is little in the way of data releases across all three trading sessions today, although we are set to hear from some key central bankers. We have already heard from Fed Chair Jerome Powell today shortly before the Asian open, although he avoided any market-moving comments in a speech at Princeton University. We are due to hear from the German Buba President Joachim Nagel and ECB President Christine Lagarde during the European session today, which could see some moves in the euro. Traders will also be aware that both US and UK markets are closed today, which will affect liquidity in the latter sessions of the day, and moves could be exacerbated—especially if more tariff updates hit the newswires.
