Market Summary (May 23, 2025)
US markets remain under pressure as a credit downgrade and a $3.8 trillion tax-cut bill have sparked capital outflows: bonds and the dollar are down, equities choppy with a slight bearish tilt. Asia-led dollar selling persists, driving gold to fresh highs and bitcoin to all-time peaks as investors seek non-fiat havens. US yields spiking signal distress, while Japanese 40-year bond yields near 3.7% hint at potential repatriation flows and JPY upside. Expect further USD weakness, continued safe-haven runs into gold and crypto, and a bearish bias in risk assets.
