U.S. equities suffered a bruising week, capping off the week with an ugly Friday as investors continued to digest a slew of market-moving news and developments. Federal Reserve Chairman Jerome Powell emphasized that he is not the market’s babysitter, reiterating the need for investors to navigate the financial landscape independently. This comment highlighted a deeper theme that U.S. exceptionalism is absent, thus the country is diving further into the abyss of unknown.
Market participants are exhibiting a cautious approach, displaying little appetite to pursue the strength of the U.S. dollar amid ongoing economic concerns. We recognize that the current trading environment is pretty subdued. Topped off with Good Friday around the corner, we may even see less of an active market. Many traders are taking profit booking as they set their sights on long Easter weekend.
Ethereum is one of the most popular cryptocurrencies today. As of Thursday morning, it was trading just under $1,600, reflecting the stormy mood in digital asset markets. Total net assets of U.S. spot Ether Exchange-Traded Funds (ETFs) plummeted by a staggering 60%. Whatever the causes, this alarming decline has stirred concerns among investors about the stability of the cryptocurrency. Despite this downturn, prominent figures like Justin Sun have publicly stated that they will not sell their ETH holdings, indicating a measure of confidence amid market volatility.
The foreign exchange (FX) market is in a rangebound and twitchy mode, with moves dominated by a suddenly weakening USD. The Australian dollar is on a roll! It has nevertheless made strong gains against the greenback, with the AUD/USD pair rising sharply as investors react to a shifting economic picture.
Gold prices were little changed on Friday, continuing to prove their resiliency after pulling back sharply from an all-time high of $3,358. Investors are using this calm before the storm to lock in profits over the Easter holiday. Beyond just this move, the trend paints an overall picture of really nervous, cautious trading behavior.