Equities Start the Week Higher

Trade talks were front and center starting off the week, and the equity markets saw sharp increases with the Nasdaq leading the way higher, being up over 4% on the session with the S&P and Russel also up over 3%. The U.S. and China agreed to a 90-day pause on tariffs, and traders had been waiting for news about this since the initial breakdown in early April. While equities saw gains, the Gold market saw selling pressure being down over 3% today, and now over $200 below the recent all time high.

The CME Fed Watch Tool probabilities have also been changing over the past week, where the July meeting now has a higher probability of another rate pause instead of a rate cut. The market is now pricing in the first rate cut to come at the September meeting at a near 50% probability. Tomorrow traders will see CPI numbers come out, offering data on inflation which could also add volatility to the equity and precious metals markets.

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**All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.