United States
U.S. equity markets extended their winning streak on Friday, as investor confidence remained strong amid ongoing optimism surrounding tariff negotiations. A sharp decline in consumer sentiment, as reported by the University of Michigan, was largely overlooked by markets despite reaching its lowest level in three years.
The Nasdaq Composite rose 98 points, or 0.52%, to close at 19,211. The Dow Jones Industrial Average added 332 points, ending the session 0.78% higher at 42,654.74. The S&P 500 gained 41 points, or 0.70%, to close at 5,958, with every sector finishing in positive territory except energy. For the week, the S&P 500 posted a gain of more than 5%.
Consumer discretionary and staples sectors both advanced, with investors now awaiting earnings results from Target and Home Depot in the coming days. On Thursday, Walmart warned that it would likely raise prices due to the impact of tariffs already in place. Despite this caution, Walmart shares rose 1.96% on Friday to close at $98.24. Costco shares also moved higher, gaining 1.52% to finish at $1,025.83. Tesla continued its recovery, adding 2.09% to reach $349.98, now up approximately 50% from its mid-April lows.
Healthcare was the best-performing sector of the day, rising 1.96%. UnitedHealth rebounded 6.4%, recovering from earlier declines triggered by the abrupt departure of its CEO and news of a criminal investigation into Medicare fraud. Eli Lilly also contributed to the sector’s strength, gaining 3.29%.
CoreWeave, the newly listed cloud computing provider soared 22% to $80.30 after Nvidia reported a larger than expected stake in the company. Nvidia holds about 7% of CoreWeave’s outstanding stock. Nvidia shares were higher by 0.42% to $135.40.
U.S. bond yields climbed modestly, with the 10-year Treasury yield rising four basis points to 4.48%, while the 2-year yield also increased by four basis points to 4.00%.
In Washington, House Republicans voted against President Trump’s sweeping tax reform bill on Friday, citing concerns that it did not go far enough in addressing government spending. After markets closed, Moody’s downgraded the U.S. credit rating by one notch, from Aa1 to Aaa, citing debt levels and interest costs that are significantly higher than those of similarly rated sovereign nations. Adding further pressure, President Trump took to social media to criticise the Federal Reserve once again, calling Chair Jerome Powell “Too Late Powell” and urging an immediate rate cut.
The U.S. dollar was relatively stable, rising 0.18% on the Bloomberg Dollar Index. It opens the week trading at 145.70 against the Japanese yen and 1.1163 against the euro.
Europe
European equity markets joined the global rally on Friday, with broad gains across sectors. The UK’s FTSE 100 rose 0.59% to close at 5,958, while the Euro Stoxx 600 advanced 0.42%, adding 2.31 points to finish at 549.26. Nine of the eleven sectors finished higher, led by healthcare and communication services. The Stoxx 600 gained more than 2% for the week, marking its fifth consecutive weekly advance.
The healthcare sector followed the strong performance of its U.S. counterparts. AstraZeneca rose 1.9% and Novartis gained 1.3%. However, Novo Nordisk fell 1.3% after announcing the departure of its CEO by “mutual agreement” amid weak share performance and a downgrade to its sales and profit outlook.
Luxury stocks were standouts after Richemont, the Swiss luxury goods maker, reported better-than-expected quarterly sales. Its shares surged 6.94%, helping lift the broader luxury index, which outperformed with a 2.2% gain. Other luxury names in the sector also rose in sympathy with the strong result.
In contrast, commodity stocks were under pressure. Glencore dropped 1.7% while Anglo American fell 3.6%, giving back some of its recent gains amid weaker prices for industrial metals.
Bond yields fell across the region. Germany’s 10-year Bund yield declined 3 basis points to 2.59%, while the UK 10-year gilt yield edged 1 basis point lower to 4.65%.
Looking ahead, a UK-EU summit this week may mark a turning point in relations, with hopes of improved cooperation, especially as shifting U.S. trade policies reshape global dynamics. According to the Financial Times, the EU and U.S. have reportedly broken a negotiating impasse, opening the door for formal talks between the US and EU, lifting the EU from the “back of the queue” for trade negotiations.
Australia
The Australian equity market extended its winning streak to eight consecutive sessions, rising another 46 points (+0.56%) to close the week at 8,343.70. Investor sentiment remained buoyant, driven by ongoing optimism around tariffs, prompting increased risk-taking across portfolios.
On the day, seven of the eleven sectors finished higher, led by real estate and materials, while technology lagged.
Materials saw strong support as iron ore prices pushed above the US$100 mark during the week. Miners rallied, with BHP gaining 1.35% to $39.72 and Fortescue Metals rising 1.25% to $17.00. Gold miners also rebounded, with Evolution Mining adding 3.55% and Northern Star Resources up 2.72% to $18.53. Energy stocks were largely flat, with the sector slipping 0.16%.
Banks were mixed. NAB rose 1.15% to $37.01, while CBA dipped 8c to $169.66 after touching an all-time high of $172.92 earlier in the session. CBA’s valuation has drawn scrutiny, with a price-to-earnings ratio of 28.7 considered “eye-watering” by some analysts. The bank has also become a substantial shareholder in Helia, the mortgage insurance provider. Earlier this year, CBA declined to renew a key contract with Helia, which led to a sharp sell-off. Helia has since recovered to be near all-time highs; shares of Helia were up 4c to $5.25 on Friday. Macquarie Bank saw profit-taking, falling 1.51% to $211.25.
Real estate stocks were in high demand ahead of this week’s RBA interest rate decision, with the sector advancing 2.3%. Goodman Group climbed 2.91% to $31.82, and Scentre Group gained 2.54% to $3.64. However, Dexus declined 1.09% to $7.23 amid reports it had disclosed confidential information regarding Australian Pacific Airports Corporation (APAC)—the operator of Melbourne and Launceston airports. Dexus, which owns a 27% stake in APAC, is seeking new investors for the project. Allegations of disclosure were raised by several Australian superannuation funds and other large stakeholders.
Bond yields were lower, with the 10-year yield down to 4.45%, and the 2-year yield unchanged at 3.55%, as markets await Tuesday’s RBA meeting. A 25-basis point rate cut to 3.85% is widely anticipated, with some economists expecting an additional cut in July.
In overnight futures trading, the ASX200 contract slipped 7 points, or 0.08%. The Australian dollar begins the week at USD 0.6406.
Commodities
Copper prices declined on Friday as a rising stockpile in China weighed on sentiment. On the London Metal Exchange, copper fell 1.3%, or US$130, to close at US$9,448 per tonne. The increase in inventories this week reversed the drawdowns seen over the past month.
Iron ore also retreated, closing at US$99.90 in New York—down 1.4% from Thursday’s level. Most of the decline occurred during the Asian trading session.
Oil prices rebounded, with West Texas Intermediate (WTI) gaining 1.41% to settle at US$62.49, while Brent crude rose 88 cents to US$65.41, up 1.36%. These gains helped offset Thursday’s losses, which followed reports of progress on a potential nuclear deal with Iran. Despite the rebound, concerns remain around additional supply from OPEC+ and the possibility of slowing global demand growth.
Gold extended its weekly decline, falling 1.13% on Friday to close at US$3,203.65. For the week, gold dropped 3.6% as investors shifted toward riskier assets. Silver also weakened, slipping 1.06% to US$32.29.
Bitcoin moved slightly higher adding 0.62% to close on Sunday at US$104,100.
Economic Calendar
China:
- Industrial Production (Apr) – 12:00pm
- Retail Sales (Apr) – 12.00pm
US:
- Conference Board Leading Index (Apr) – 12:00am
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
