US stock market mixed as Dow rises and tech stocks cool

Overnight, Asian Pacific stock indices were mostly in the red. Australia’s ASX 200 bucked the trend to finish in positive territory, gaining 0.6%. The Japanese Nikkei was flat, despite quarter-on-quarter GDP dropping 0.2%, slightly worse than expected. 

Separately, Japanese data showed record levels of foreign capital inflows during April, as investors shifted exposure away from US equities amid ongoing tariff-related uncertainty. Traders will be watching closely to see whether this trend persists in May. Hong Kong’s Hang Seng and the Shanghai Composite lost 0.5% and 0.4% respectively, as investors squared off positions ahead of the weekend.

European stock indices were all firmer in early trade, as markets played catch-up with strength across Wall Street following yesterday’s European close. The German DAX was back within 0.5% of Monday’s all-time intra-day high.

FX markets were quiet this morning. Most currency pairs were little-changed in early trade, with a slight bias towards a weaker US dollar. A look at the charts suggests that most pairs are consolidating, following the month-long recovery in the US dollar off the multi-year lows hit last month. 

The Japanese yen is perhaps the odd one out here. It has strengthened sharply this week, reversing all last week’s losses against the dollar. It has also staged a recovery against the euro, sterling and Australian dollar.

Source: TN Trader

Gold staged a strong recovery on Thursday afternoon. It fell sharply initially, trading down to $3,120 – its lowest level in close to five weeks. Yesterday’s late rally took gold back above $3,250, the day’s high, and the close. But it pulled back below $3,200 again in early trade on Friday, and it looks like a coin toss to decide short-term direction. 

Silver was also down on Friday. It broke down below $32 yesterday (the lower end of its recent trading range) but rallied back up along with gold. It has remained relatively stable compared to gold, having spent the last four weeks mostly consolidating between $32 and $33 per ounce.

Oil prices edged lower overnight. At the time of writing, front-month WTI was trading around $61 per barrel. The move follows a notable rise earlier in the week, and the modest decline may reflect lingering concerns about supply dynamics and uneven global demand.

Gas prices remained flat, but with the recent inability to hold above the 360 BTU mark, momentum has clearly stalled. Traders may be watching closely for a more decisive move in either direction.

Crypto markets saw a slight recovery overnight, led by gains in Ether. Bitcoin is showing obvious signs of consolidation between $101,000 and $105,000, following the rally from $75,000 in early April. While sentiment remains broadly constructive, the sector appears to be looking for a new catalyst to push prices meaningfully higher. The tone remains cautiously optimistic as traders reassess the broader risk backdrop.

The VIX, Wall Street’s key volatility gauge, held steady around 18.00. This level suggests a relatively calm market backdrop, particularly given the week’s headline-heavy environment. While volatility has dropped substantially from five weeks ago, the VIX is still moderately elevated on a historical basis. Investors are still mindful of potential surprises, especially with policy and macro risks lingering in the background.

Source: TN Trader

No major earnings releases are expected today, giving traders room to focus on economic data. On the docket are US housing figures, import price data, and the latest consumer confidence readings — all of which may offer fresh insight into how consumers and policymakers are digesting the current economic landscape.

Walmart’s CEO offered reassurance that the company should have no trouble absorbing higher tariffs, a comment that aligns with its dominant industry position.

Elsewhere, Coinbase remains in the spotlight amid ongoing discussions with the SEC. Geopolitically, Trump reiterated that he does not want Apple producing in India, while his recent Gulf tour resulted in a $90 billion deal between Aramco and US firms.

Fed Chair Powell’s latest comments struck a cautious tone, noting risks to long-term rates stemming from persistent supply shocks.

Equities may be transitioning into a consolidation phase after a strong week. The Nasdaq’s pause suggests profit-taking is underway, while the Dow’s resilience points to a potential sector rotation.

The US dollar continues to struggle, giving space for commodity-linked currencies to extend gains. Gold and silver remain volatile, with gold seeing $100 swings as traders balance inflation expectations and shifting sentiment.

Oil’s recent dip reflects market hesitation on the demand story, while crypto’s quiet recovery highlights cautious optimism. For now, the VIX’s subdued level signals that risk appetite remains intact, though traders remain vigilant heading into next week.