Wall Street Turns Cautiously Bullish as Inflation Slows, Capital Flows Return
U.S. equity markets ended the week with cautious optimism, buoyed by cooling inflation and resilient economic data. While expectations for near-term Fed rate cuts have been tempered, investor sentiment received a boost from renewed capital inflows into equities — the first in over a month.
- Dow Jones Industrial Average: +0.12%
- Nasdaq Composite: +0.47%
- S&P 500: +0.25%
U.S. equity funds saw $19.8 billion in inflows, signaling a broader return of investor confidence.
Asian Markets Cool After Strong Week
Asian equities closed the week on a mixed note, digesting strong earlier gains tied to tariff relief between the U.S. and China. The Hang Seng continued to benefit from tech stock rebounds, while Japan’s Nikkei dropped after disappointing GDP data.
- Hang Seng Index: +1.65%
- Nikkei 225: -1.10%
- Shanghai Composite: +0.42%
Japan’s Q1 GDP contracted by 0.2%, prompting the BoJ to pause rate hike plans.
Europe Extends Gains Amid Trade Relief and Rate Caution
European equities posted modest gains, driven by easing energy prices and continued optimism over trade. Flows into European stocks remained strong for the fifth consecutive week, though macro uncertainties kept gains in check.
- DAX (Germany): +0.38%
- CAC 40 (France): +0.19%
- FTSE 100 (UK): +0.11%
The Sunday Times Rich List reported the biggest annual drop in UK billionaires on record, citing market volatility and tax reforms.
Key Stock Movements (U.S. Market)
- Apple (AAPL): -0.7% on renewed supply chain risks
- Nvidia (NVDA): +3.1% as AI hardware demand accelerates
- ExxonMobil (XOM): -0.8% amid ongoing oil price weakness
- Tesla (TSLA): +1.6% ahead of key production guidance update
Global Economic Headlines
Oil Stabilizes After Sharp Midweek Drop
Optimism around a potential U.S.-Iran nuclear deal pressured crude earlier in the week, but prices recovered slightly by Friday.
- WTI Crude: -1.6%
- Brent Crude: -1.3%
Gold Eases as Equities Gain Favor
Improving risk appetite and lower inflation pushed gold prices lower.
- Gold (XAU/USD): -2.9%
U.S. Inflation Slows to 2.3%
CPI fell to a four-year low, boosting hopes for a soft landing even as consumer demand remains strong enough to delay aggressive Fed easing.
🇮🇳 RBI Holds Rates Steady
India’s central bank maintained its neutral stance, with inflation remaining within target. Markets welcomed the move.
- iShares MSCI India ETF (INDA): +1.22%
Conclusion
Global markets are navigating a tricky balance of cooling inflation, resilient consumption, and geopolitical recalibration. With rate cut hopes dimmed but capital inflows returning, Q2 may shape up to be a pivot point for investors who stay selective and strategic.
