The U.S. Dollar Index saw volatile trading this week, briefly falling to near an eight-week low as a sharp drop in oil prices eased inflationary pressures and weaker-than-expected U.S. employment data cooled expectations for interest rate hikes; on Thursday, renewed tensions in the Strait of Hormuz caused oil prices and U.S. Treasury yields to rebound, and the dollar recovered slightly, supported by safe-haven demand and interest rate differentials.On Friday, the nonfarm payrolls report delivered a massive surprise with a negative reading, sending the dollar index lower once again; as of press time, it stood at 99.48, and is expected to close lower for the second consecutive week.
Gold surged strongly this week, with a single-day jump of over 4% on Wednesday—marking a near seven-week high and the largest one-day gain since February.Falling oil prices, poor U.S. employment data, and weakness in the U.S. dollar and Treasury yields collectively drove capital back into gold. Following the release of the significantly weaker-than-expected nonfarm payrolls report, spot gold surged sharply in the short term, trading at approximately $4,350 per ounce at the time of writing.
Oil prices followed a “plunge-then-rebound” pattern this week. As Trump suspended a new round of strikes against Iran, tensions between the U.S. and Iran eased, and expectations for the reopening of the Strait of Hormuz intensified, causing both WTI and Brent crude to plummet early in the week.Starting Thursday, Iran announced plans to restrict the passage of “hostile” vessels from the U.S., Israel, and other countries while reserving the right to impose fees and intervene. As the market once again factored in supply risks, both WTI and Brent crude rebounded significantly.
Non-U.S. currencies saw mixed and volatile performance this week. The euro and British pound were initially boosted by a weaker U.S. dollar and falling oil prices, but their gains narrowed as demand for the U.S. dollar as a safe-haven asset rebounded.The yen saw the most pronounced volatility; joint U.S.-Japan intervention initially drove it to surge sharply, but it subsequently gave up those gains, indicating that the intervention primarily adjusted short-term positions rather than reversing pressure from the interest rate differential. The Australian dollar traded in a generally weak range as the market weighed improved risk appetite against commodity price volatility.
The three major U.S. stock indices posted overall gains this week, with the S&P 500 and the Dow Jones Industrial Average hitting new closing highs midweek.Technology, AI, and chip stocks led the gains, with the Philadelphia Semiconductor Index surging 6.6% on Tuesday before mixed earnings reports triggered profit-taking; energy stocks came under pressure early in the week as oil prices fell, prompting capital to shift toward sectors such as healthcare.