From Tariffs to Tech: Market Movers This Week - 10.13

The live dollar index stayed strong. U.S. dollar performed better than other major currencies, mostly because traders expect the Fed to respond to economic uncertainty with rate adjustments.

• EURUSD: The euro fell to around 1.1542, hurt by weak data from Europe (low growth, low inflation). At the same time, demand for dollars stayed high, keeping the pair under pressure.
• GBPUSD: The pound weakened due to UK growth concerns, meaning investors doubt the British economy is near-term strength.
• USDJPY: The yen softened because traders moved out of safe havens after Trump eased his tariff stance, less fear means less yen buying.
• AUDUSD: The Australian dollar dropped as commodity prices fell and China trade fears rose. China is Australia’s biggest trading partner, so any China slowdown directly hits the Aussie.

U.S. stocks had a tough week.The threat of tariffs and government shutdowns have reduced the appetite for risky investments.

• Dow Jones Index: Fell 1.9%, showing broad weakness in industrials and blue-chip companies.
• Nasdaq Index: Dropped 3.56%, hit hardest because tech stocks, often seen as riskier, took a beating.
• S&P 500 Index: Down 2.71%, nearly all sectors saw declines.
• Nikkei Index: Rose 0.28% thanks to the weaker yen, good for Japanese exporters.
• Hang Seng Index: Up 1.11% because traders hope China will add more stimulus to support its slowing economy.
• Australian Stock Index: Stayed flat, energy stocks did well, but bank shares dragged.

With earnings season starting, traders will focus on whether companies lower their profit forecasts, especially in tech and retail.

Oil prices bounced back after Trump’s softer tone on tariffs, reduced fears of a global slowdown, which would hurt oil demand. And Middle East tensions calmed a bit, reducing supply risk.

• Brent: +1.48% to $63.64
• WTI: +1.51% to $59.79

Right now, oil supply fears are fading, but demand worries still remain because of weaker global growth. Keep an eye on U.S. inventory data and OPEC comments, as they can quickly shift price direction.

Bitcoin and Ethereum swung sharply. Bitcoin hit $126,000 before falling back to $112,500. Ethereum followed a similar pattern. Despite the price drop, crypto market, namely bitcoin may recover:

• ETF approvals, these can cause sudden buying sprees,
• also Fed rate cut expectations - lower rates often drive people to look for alternative assets - crypto.