US equities opened the week on the defensive as investors digested legal developments surrounding President Trump’s tariff program. All three major indices closed in the red, with the Dow Jones Industrial Average slipping 0.55% to 45,295, the S&P 500 down 0.69% to 6,415, and the Nasdaq leading losses, dropping 0.82% to 21,279.
—
Dollar Strengthens, Yields Edge Higher
The US dollar surged, with the DXY index rising 0.57% to 98.32, while treasury yields pushed higher across the curve. The 2-year yield climbed 2.2 bps to 3.639%, and the 10-year rose 3.3 bps to 4.261%.
In commodities, oil prices advanced as fresh US sanctions on Iranian crude hit the wires. Brent crude added 1.42% to $69.12, while WTI jumped 2.47% to $65.59. Meanwhile, gold broke to a fresh all-time high, hitting $3,540.28 intraday before settling at $3,533.16, up 1.64% on the session.
—
FX Traders Eye Busy Week
Currency markets also saw plenty of action. Both the pound and yen came under pressure—the UK’s 30-year yields spiked to the highest level since 1998, sending sterling sharply lower, while the yen was hit by growing political uncertainty, an unusual theme for Japanese assets.
The greenback was the clear winner, though softness lingered on the crosses. With Non-Farm Payrolls looming later this week, traders expect heightened volatility as the dollar remains in focus.
—
Packed Macro Calendar
The trading day ahead is loaded with data and central bank commentary.
- Australia kicks off with Q2 GDP (expected +0.5%) followed by a speech from RBA Governor Michele Bullock in Perth.
- In Europe, ECB President Christine Lagarde is set to speak just after the London open.
- The UK remains in focus with the BoE’s Monetary Policy Report Hearings.
- In the US session, traders will watch the JOLTS job openings report (expected 7.38m) along with comments from Fed dove Neel Kashkari.
With a full calendar and rising volatility, markets look set for an eventful week.