Market Summary (May 9, 2025)

Over recent sessions, the financial markets have been driven by positive trade developments between the US and China, with expectations of tariffs being reduced significantly—potentially from 145% to around 50%—which bolsters risk-on sentiment. This has strengthened the dollar, supported equities, and boosted commodities like oil and cryptocurrencies, notably Bitcoin and Solana. Hawkish signals from the Fed and ongoing trade negotiations remain pivotal; a risk of heightened volatility persists if talks with China falter or if further sanctions are imposed. Gold maintains a bullish long-term outlook despite short-term pressure, while market dynamics suggest a cautious tilt toward USD strength and equities, contingent on trade policy progress and geopolitical stability.