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- The Volatility Vortex: This Week's Financial Rollercoaster
The Volatility Vortex: This Week's Financial Rollercoaster
Hope you're having a great Sunday! ☕📈
Here’s your weekly market recap, bringing you the biggest updates in stocks, crypto, and the economy—quick, clear, and to the point.
Stock Market
Index | Week | Month | Year |
|---|---|---|---|
DOW | +4.95% | -3.07% | +5.87% |
S&P 500 | +5.70% | -4.89% | +4.68% |
NASDAQ | +7.29% | -5.80% | +3.40% |
FTSE 100 | -1.13% | -7.74% | -0.39% |
STOXX 50 | -1.87% | -11.42% | -3.39% |
NIKKEI 225 | -0.58% | -9.36% | -15.02% |
Stocks Headlines
Markets were rattled this week as global turmoil sparked sharp declines across major indices. Hawkish central bank signals, unexpected economic data, and rising geopolitical tensions hit investor confidence. Volatility surged, with stocks and bonds swinging wildly as markets struggled to find direction amid uncertainty.
$AAPL ( ▲ 0.44% ) : Apple faces pressure from new U.S. tariffs on Chinese goods, risking iPhone price hikes. To counter, it rushed 1.5M units from India. But now, with signs of potential tariff exceptions, market sentiment is shifting. Investors are eyeing Monday for a possible rebound in Apple’s stock as optimism builds. The move could ease trade tension worries and stabilize the tech giant’s outlook.
Prada has acquired Versace from Capri Holdings for €1.25 billion ($1.375 billion), marking a significant consolidation in the Italian luxury fashion industry. The deal aims to rejuvenate Versace, which has faced financial challenges under Capri's ownership. Prada plans to leverage its operational strengths to revitalize Versace's brand while maintaining its distinctive identity. This acquisition positions Prada to compete more effectively with French luxury conglomerates like LVMH and Kering.
Klarna has postponed its planned IPO amid market volatility triggered by the Trump administration's sweeping tariffs on Chinese imports. The Swedish fintech, known for its buy-now-pay-later services, was set to launch its IPO roadshow on Monday but decided to delay, joining other companies like StubHub in pausing public offerings due to investor uncertainty.
Spotlight
Nintendo Switch 2, launching June 5, 2025, offers a 7.9-inch LCD, 120fps handheld gaming, 4K HDR docked support, 256GB storage, and upgraded Joy-Cons. However, U.S. release could face delays due to tariff uncertainty.
Crypto
Asset | Week | Month | Year |
|---|---|---|---|
Bitcoin | +7.48% | +0.33% | +28.24% |
Ethereum | +0.82% | -16.64% | -49.45% |
XRP | +12.38% | -8.32% | +328.90% |
Crypto Radar
Following President Trump's announcement of a 90-day pause on reciprocal tariffs, cryptocurrency markets experienced a notable uptick. Bitcoin surged to approximately $82,000, while smaller cryptocurrencies like XRP and Solana also saw significant gains. Crypto-related stocks, including Coinbase and MicroStrategy, benefited from the renewed investor optimism. This rally reflects increased market confidence amid reduced trade tensions.
Under President Trump, the U.S. is moving towards deregulation of the cryptocurrency industry. The National Cryptocurrency Enforcement Team was disbanded, and Executive Order 14178 aims to establish a federal framework for digital assets. While this shift promises reduced oversight, concerns over increased political spending by crypto firms and less investor protection have surfaced.
The Trump family has significantly expanded its crypto investments. Eric and Donald Trump Jr. launched World Liberty Financial (WLF), raising over $550 million and holding a 60% stake. They’re also involved in Bitcoin mining via American Bitcoin, aiming for a public listing. Additionally, they’ve introduced memecoins and NFTs, including the $Trump coin. These ventures raise concerns over potential conflicts of interest and regulatory oversight.
Economy
Region | GDP Growth | Inflation Rate | Interest Rate |
|---|---|---|---|
US | 2.40% | 2.40% | 4.50% |
UK | 0.10% | 2.80% | 4.50% |
EU | 0.00% | 2.20% | 2.65% |
Economic News
Federal Reserve officials have indicated that interest rate cuts remain a possibility for the U.S. economy. However, they caution that the current climate of tariffs and market volatility makes any immediate policy changes unadvisable. The interplay between trade policies and monetary decisions continues to be a focal point for policymakers.
Oil prices fell over 3% amid concerns that escalating U.S.-China trade tensions could lead to a global recession, reducing oil demand. Brent crude declined by $2.10 (3.2%) to $63.48 per barrel, and U.S. West Texas Intermediate crude dropped $2.14 (3.5%) to $59.85. China's retaliation against U.S. tariffs by imposing additional levies of 34% on American goods heightened fears of a full-blown trade war.
Trump’s trade policies have unintentionally brought the EU and China closer, as the EU seeks China’s cooperation to counter escalating trade tensions. However, deep-seated concerns over China’s trade practices, market access, and regional influence continue to create friction. The EU’s internal divisions further complicate its approach, making any closer ties cautious and pragmatic.
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Disclaimer:
We are not financial advisors, and the information provided in this newsletter is for educational purposes only. Always conduct your own due diligence and consider what makes sense for your individual financial situation. Investing involves risks, and there is no guarantee of making money. In fact, you may lose money. We aim to provide you with the tools and insights to help you make informed decisions, but the ultimate responsibility lies with you.