ADDX GO Market Morning Wrap - 7th May

Stock Market

On Tuesday, Eastern US Time, investors' concerns about the global trade situation intensified, and the three major indexes collectively closed lower, with the Dow Jones Industrial Average falling nearly 1%.

 

At the close, the Dow Jones Industrial Average dropped 0.95%, closing at 40,829.00 points; the S&P 500 Index fell 0.77%, closing at 5,606.91 points; and the Nasdaq Composite Index dropped 0.87%, closing at 17,689.66 points.

 

Pharmaceutical stocks were among the biggest decliners. Sarepta Therapeutics Inc (SRPT) dropped by more than 26%, and Eli Lilly and Company fell by more than 5%. Palantir dropped by more than 12%, recording its worst single-day performance in a year. Nuclear power concept stock Constellation Energy Corp. (CEG) rose by more than 10%, achieving its largest single-day gain since February 21.$SRPT $LLY $PLTR 

 

In addition, there is a very important thing to note. According to the Inter-Services Public Relations (ISPR) of Pakistan on May 7, Pakistan and India have started exchanging fire along the Line of Control in Pakistani-administered Kashmir. 

The picture is sourced from official media

Key Events

• Exchange of fire between Pakistan and India in Pakistani-administered Kashmir: Early on the morning of the 7th local time, the Inter-Services Public Relations of Pakistan issued a statement saying that India launched missiles at three locations in Pakistan proper and Pakistani-administered Kashmir. Currently, the damage assessment is underway.At the same time, Pakistan immediately retaliated. According to Pakistani media and security sources, the Pakistani military destroyed a brigade-level command post of India during the operation. It is reported that the Pakistani military is retaliating against India at multiple locations.
• US-EU trade negotiations encounter obstacles and the EU is reportedly considering imposing tariffs on US goods worth 100 billion euros: According to media reports citing sources, if the current trade negotiations do not yield satisfactory results, the EU plans to impose additional tariffs on approximately 100 billion euros (about 113 billion US dollars) worth of US products.
• Another twist in the tariff negotiations? Trump made a surprising statement: The US doesn't need to sign a trade agreement: On Tuesday (May 6) local time, the author of "The Art of the Deal" and US President Donald Trump surprisingly stated that the US "does not need" to sign agreements with its trading partners. This is in sharp contrast to what senior White House officials have said in recent weeks, who claimed that signing trade agreements is a top priority for the government.
• The new federal government of Germany takes the oath of office: On May 6 local time, the new federal government of Germany took the oath of office in the Bundestag. Previously, the members of the new government received their appointment letters from German President Frank-Walter Steinmeier at the presidential palace.
• AMD's first-quarter revenue is $7.44 billion, a year-on-year increase of 36%: AMD's first-quarter revenue was $7.44 billion, a year-on-year increase of 36%, compared with an estimate of $7.12 billion; adjusted earnings per share were $0.96, compared with $0.62 in the same period last year, and the estimate was $0.94.$AMD 

Forex & Commodities

The settlement price of COMEX gold futures rose by $100.50, or 3.03%, to close at $3,422.80 per ounce.

 

International oil prices rose significantly on the 6th.

 

At the close of the day, the price of light sweet crude oil futures for June delivery on the New York Mercantile Exchange rose by $1.96 to close at $59.09 per barrel, an increase of 3.43%; the price of London Brent crude oil futures for July delivery rose by $1.92 to close at $62.15 per barrel, an increase of 3.19%.

 

On May 6 local time, at the close in New York, the US dollar index fell 0.53% to 99.27, and most non-US currencies rose.

Key Events

• UBS expect the US dollar to weaken again, and gold remains supported:On May 6, the Chief Investment Office (CIO) of UBS Wealth Management released an institutional view, believing that the US dollar has been oversold recently and expecting a period of consolidation in the short term. In the medium term, the trend of the US dollar's weakness is likely to reappear. At the same time, the price of gold should be well supported by "safe haven" demand and structural buying.UBS said that the Federal Reserve should resume interest rate cuts later this year. As price pressures ease and the labor market weakens, the Federal Reserve will be able to resume its easing policy in the second half of this year, cutting interest rates by 75-100 basis points to support growth. Lower interest rates will support the price of gold because the opportunity cost of holding gold decreases.

Cryptocurrency

Bitcoin was up 0.6% to $95,103, and the cryptocurrency's 24-hour trading volume dropped 10.7% to $23.72 billion.#btc 

 

Ethereum (ETH-USD), the second-largest digital asset by market value, was down 1.4% to $1,791.

 

XRP (XRP-USD) lost 0.2%, BNB (BNB-USD) gained 0.2%, and Solana (SOL-USD) dipped 1.1%.

 

Dogecoin (DOGE-USD) fell 1.3%, and Cardano (ADA-USD) eased 0.1%.

 

The total market value of the cryptocurrency industry rose 0.1% in the past 24 hours to $2.95 trillion, with trading volume down 0.3% to $67.82 billion.

Key Events

• An entrance fee of $1.5 million per person! Trump hosts two cryptocurrency dinners in a month: US President Donald Trump hosted a "Dinner for Cryptocurrency and Artificial Intelligence Innovators" on Monday (the 5th) local time. Later this month, he will also host a dinner for the owners of "Trump Coins". The two events are expected to raise tens of millions of dollars.

Market Events and Most Anticipated Earnings Releases