Stocks closed mixed on Friday as markets absorbed a busy week of trade headlines, corporate earnings, and shifting global sentiment. While the Dow dipped slightly, the S&P 500 and Nasdaq ended near flat, showing limited commitment from buyers or sellers. A recently announced US.-UK trade deal provided a modest boost to transatlantic relations, but investors showed restraint amid broader policy ambiguity. In Europe, equities pushed higher with Germany’s DAX setting fresh records, while oil rallied on signs of tightening supply. Overall, the session reflected a market waiting for clearer signals before making its next move.

Key Takeaways:

  • Dow Slips as Tariff Focus Tempers Sentiment: The Dow Jones Industrial Average fell 119.07 points, or 0.29%, to 41,249.38 as investors remained cautious heading into trade talks. Despite recent optimism around the US-UK deal, uncertainty over broader tariff direction and economic consequences weighed on blue-chip stocks. For the week, the index declined nearly 0.2%.
  • S&P 500 Ends Flat Amid Global Trade Caution: The S&P 500 edged down 0.07% to close at 5,659.91, marking a weekly drop of approximately 0.5%. While upbeat corporate earnings supported some pockets of the market, investors remained reluctant to add risk until there is greater clarity on trade developments, particularly US-China tariff policy.
  • Nasdaq Holds Ground as Tech Stocks Diverge: The Nasdaq Composite ended almost unchanged at 17,928.92, posting a weekly loss of about 0.3%. Tech earnings results were mixed, with notable gains from chipmakers and online platforms offset by weakness in select cloud and software names. 
  • Europe Ends Higher, DAX Hits New Record: European equities rallied on Friday as investor sentiment improved following the US-UK trade agreement. Germany’s DAX rose 0.63% to a record 23,499.32, while the Stoxx Europe 600 added 0.44% and the UK’s FTSE 100 gained 0.27%. France’s CAC 40 climbed 0.64%, and Italy’s FTSE MIB advanced 1.02%. Despite Friday’s uptick, the FTSE 100 ended the week lower, snapping a winning streak. European bond yields rose, with Germany’s 10-year bund yield hitting a 4-week high at 2.588%. ECB policymakers suggested a rate cut in June remains likely, provided inflation continues to moderate and US tariffs do not derail Eurozone recovery efforts.
  • Asia Mixed as China Data Clashes with Tariff Worries: Asian markets posted mixed results as strong Chinese export figures were overshadowed by trade tension with the US China’s exports surged 8.1% in April, driven by demand from Southeast Asia, though shipments to the US plunged over 21% due to prohibitive tariffs. Mainland China’s CSI 300 fell 0.17%, while Hong Kong’s Hang Seng added 0.4%. Japan’s Nikkei 225 jumped 1.56%, and the Topix rose 1.29%, both lifted by strong corporate results. South Korea’s Kospi dipped 0.09%, and Australia’s ASX 200 added 0.48%. In India, the Nifty 50 fell nearly 1% as geopolitical tensions with Pakistan intensified, pressuring investor confidence.
  • Oil Rises Over 4% on Trade Hopes and Output Dynamics: Oil prices gained for a second straight week amid signs of improving trade relations and tighter supply signals. Brent crude climbed 1.7% to $63.91 per barrel, and WTI rose 1.85% to $61.02, with both benchmarks rising over 4% for the week. Meanwhile, Saudi Aramco reported a 5% decline in Q1 net profit to $26 billion, slightly above estimates, citing weaker oil prices and lower production volumes. OPEC+ output in April fell marginally, with declines in Libya, Iraq, and Venezuela offsetting scheduled increases, reinforcing a tight market outlook.
  • Treasury Yields Steady Amid Rate Cut Pressure: The 10-year Treasury yield edged up one basis point to 4.386%, while the 2-year yield dipped slightly to 3.889%. The bond market remained relatively stable as traders awaited further developments in global trade policy and ongoing pressure from the White House on the Fed to ease monetary policy. 

FX Today:

  • EUR/USD Pulls Back as Correction Continues: EUR/USD closed at 1.1257, rising 0.29% on the day but extending its short-term pullback after peaking above 1.1500 earlier in May. The pair remains supported by a rising 50-day SMA at 1.1061, while the 100-day and 200-day SMAs at 1.0724 and 1.0792 continue trending upward. The recent dip appears corrective within the context of a broader uptrend, with buyers likely to step in near the 1.1150–1.1100 zone. A sustained drop below 1.1000 would weaken the bullish case, while resistance is now seen at 1.1300 and with the recent high near 1.1550. 
  • GBP/USD Holds Above 1.3300 as Bulls Defend Range: GBP/USD finished the session at 1.3311, advancing 0.50% and consolidating near multi-month highs. The pair is maintaining a strong bullish structure, with price trading above its 50-day SMA at 1.3073, and longer-term support from the 100-day and 200-day SMAs at 1.2767 and 1.2859 respectively. Recent price action has been range-bound following a surge above 1.3400 in April. Support is now seen at 1.3250 and 1.3200, while a break above 1.3400 could signal renewed upside. The overall trend remains intact unless the pair closes below 1.3100, where the rising SMA zone would be compromised.
  • USD/JPY Retreats from Resistance as Trend Remains Bearish: USD/JPY settled at 145.30, falling 0.41% after failing to break above key resistance near 146.20. The pair remains capped by the 50-day SMA at 146.31, which has turned into a consistent ceiling for price action. The broader downtrend stays intact, with the 100-day and 200-day SMAs at 150.46 and 149.57 both sloping lower and positioned above current levels. Momentum appears to be fading, and a drop below 144.00 would likely expose support at 142.00 and 141.00. A close above 146.50 is needed to shift the tone more favourably, but for now the bias remains downward.
  • Silver Holds Above $32.50 With Range-Bound Bias: Silver closed at $32.73, gaining 1.01% and consolidating above its 50-day SMA at $32.71. The 100-day and 200-day SMAs at $31.80 and $31.20 continue to climb, reinforcing a constructive trend. Price has been oscillating within the $31.50–$33.50 range for several weeks, unable to retest April’s highs near $34.50. Support is firm near $32.00, while resistance looms at $33.00 and $33.50. As long as price holds above $31.00, the technical structure favours eventual upside.
  • EUR/GBP Slips to Key Support Near 0.8450: EUR/GBP ended the session at 0.8456, down 0.22%, as the pair continued to unwind gains from its mid-April rally. The price is now testing the 50-day SMA at 0.8457, a level that has acted as dynamic support. The short-term trend has turned corrective, with lower highs forming through early May, though the medium-term outlook remains cautiously bullish as long as price stays above the 100-day and 200-day SMAs at 0.8395 and 0.8389. A break below 0.8450 could trigger further downside toward the 0.8400–0.8375 zone. Resistance stands at 0.8550 and 0.8600, and price may stay range-bound absent new catalysts.
  • Gold Steadies Above $3,300 as Market Awaits Directional Break: Gold (XAU/USD) rose 0.71% to settle at $3,327, holding just above a cluster of key support levels. The metal continues to find buyers around the $3,275 zone, where the 50-day SMA at $3,130 provides technical backing. The broader bullish trend is reinforced by the 100-day and 200-day SMAs at $2,947 and $2,775, both of which are rising steeply. Price has remained trapped between $3,275 and $3,350 since pulling back from the April high near $3,500. A close above $3,350 would signal bullish continuation, while any dip below $3,275 could invite further consolidation toward $3,200.

Market Movers:

  • Insulet Surges on Strong Revenue and Upbeat Outlook: Insulet (PODD) jumped more than 20% to lead the S&P 500 after reporting Q1 revenue of $569.0 million, topping the consensus estimate of $543.5 million.
  • Lyft Rockets on Booking Forecast Above Estimates: Lyft (LYFT) surged more than 28% after projecting Q2 gross bookings between $4.41 billion and $4.57 billion. The midpoint of the guidance range topped the consensus estimate of $4.48 billion.
  • Globus Medical Sinks on Revenue Miss: Globus Medical (GMED) dropped over 22% after reporting Q1 net sales of $598.1 million, missing the $627.2 million consensus. 
  • Akamai Drops on Disappointing EPS Forecast: Akamai Technologies (AKAM) slid more than 10%, leading S&P 500 decliners, after guiding full-year adjusted EPS to a range of $6.10–$6.40.
  • Expedia Falls After Revenue Miss and Forecast Cut: Expedia Group (EXPE) declined more than 7% after missing Q1 revenue estimates, posting $2.99 billion versus the $3.02 billion consensus. The company also trimmed its 2025 revenue growth outlook to +2% to +4%, down from a previous estimate of +4% to +6%.
  • Affirm Tumbles on Weak Full-Year Revenue Guide: Affirm Holdings (AFRM) dropped over 14% after projecting full-year revenue of $3.16 billion to $3.19 billion. The midpoint came in below the $3.18 billion consensus, raising concerns about consumer credit demand amid rising rates.
  • CrowdStrike Slides on Regulatory Probe: CrowdStrike Holdings (CRWD) declined more than 4% following news that US prosecutors and regulators are investigating its $32 million deal with Carahsoft Technology. 

Markets ended the week without strong direction, as investors reacted to mixed signals from trade news, earnings, and global growth trends. While some areas like European stocks and oil saw solid gains, US markets stayed mostly quiet. With fewer earnings ahead and key inflation data coming soon, traders are now watching for signs of where the economy and policy might go next. Until then, markets may continue to drift as investors wait for more concrete updates. Next week’s data releases could help break the current stalemate and reset expectations.