Today’s spotlight falls firmly on the U.S. Federal Reserve, with the interest rate decision due later. No change in rates is expected, but the statement and Jerome Powell’s press conference will be closely watched for any forward guidance or shifts in tone. Markets may remain on edge until this key event unfolds.
Yesterday brought a flurry of movements across major asset classes. The Japanese Yen strengthened, continuing its role as a safe haven, while the U.S. Dollar weakened, showing signs of caution ahead of the Fed. Gold and oil both climbed, with oil bouncing back after a very bearish start to the week. This rebound helped improve sentiment across the commodity complex.
But the real story was the high volatility in equity indices. U.S. indices were choppy and indecisive throughout the session, swinging sharply in both directions. The most significant move, however, came during the lowest liquidity window — after the U.S. close and before Asia opened. That’s when markets reacted to a fresh fundamental update on trade talks: the U.S. Treasury Secretary and Trade Representative will meet with their Chinese counterparts this week in Switzerland to discuss economic and trade relations.
To further fuel the excitement, Donald Trump teased an “earth-shattering and positive” announcement in the coming days. The timing of these comments — made during off-market hours — raises eyebrows, as they sparked a sharp spike in futures, likely triggering stop-loss orders in thin market conditions.
Such maneuvers are a reminder of how fragile and reactive markets are during trade war headlines, and how demanding it is to trade these environments.
Earnings will also be in focus today, with Novo Nordisk, Uber, and Walt Disney set to release their quarterly results before the market open. Their reports will give us fresh insight into key sectors — healthcare, mobility, and entertainment — and could drive sector-specific sentiment during the session.
All in all, this Wednesday is shaping up to be both critical and potentially volatile, with macro, earnings, and trade developments all converging.