U.S. stocks rallied on Thursday, with the major indices recovering all of the prior session’s sharp losses after President Trump signaled a de-escalation in the trade standoff with Europe over Greenland. The S&P 500 jumped, and the Dow also gained, but the real star of the show was the small-cap Russell 2000, which surged to a new all-time high. The rally was broad-based, with cyclical sectors leading the charge. The «risk-on» mood was sparked by Trump’s comments that a «framework for a future deal» had been reached. This sent a wave of relief through global markets, causing safe-haven assets like gold to pull back. The Bank of Japan added to the day’s drama with a suspected «rate check,» causing a sharp but brief spike in the yen. <\/p>\n\n\n\n
After a brutal sell-off to start the week, the bulls came roaring back on Thursday, courtesy of a classic Trumpian U-turn. The announcement that the threatened tariffs on Europe were now off the table sent a powerful wave of relief through global markets, igniting a broad-based rally in equities and other risk assets. The session was a perfect illustration of how sensitive the market has become to geopolitical headlines and the unpredictable nature of the Trump administration. The rally was further supported by a fresh batch of upbeat U.S. economic data. The final Q3 GDP print was revised higher to 4.4%, and the Fed’s preferred inflation gauge, the core PCE, came in as expected. This data reinforces the «soft landing» narrative that has been a key pillar of the market’s rally. <\/p>\n\n\n\n The most encouraging sign for bulls was the continued outperformance of small caps, a clear signal of broadening market participation. However, significant risks are still brewing. The drama in the Japanese currency market, where a suspected «rate check» from the Bank of Japan caused a massive yen spike, is a stark reminder of the potential for disorderly moves as the BoJ normalizes policy.<\/p>\n\n\n\n With a slew of central bank decisions now in the rearview mirror, today’s focus is on the release of Flash PMI data from around the globe. Data Released Yesterday \/ Overnight: <\/p>\n\n\n\n Today’s Economic Calendar: <\/p>\n\n\n\n The big story in commodities has been the surge in precious metals. Gold is consolidating its gains near $4,950 an ounce, while silver has pulled back to just near $99.00 and close to the big psychological level $100. The de-escalation of the Greenland trade dispute has reduced immediate safe-haven demand. Crude oil prices fell, with WTI settling down over 2% as the market unwound the geopolitical risk premium. <\/p>\n\n\n\n The U.S. dollar is on the back foot as the de-escalation of the Greenland trade dispute has improved risk appetite. The Japanese yen was the main focus after a dramatic intraday spike. <\/p>\n\n\n\n Cryptocurrencies: The crypto market remains under heavy pressure. Bitcoin is struggling to hold the key $90,000 level, with the «digital gold» narrative failing to materialize amidst the flight to physical precious metals. The market is being hit by a wave of selling from large investors, compounding the negative sentiment. Treasuries: U.S. Treasury yields are slightly higher as investors digest the week’s geopolitical rollercoaster and a fresh batch of strong U.S. economic data. The benchmark 10-year yield is trading around 4.27%. <\/p>\n\n\n\n Today’s trading will be dominated by the release of the Flash PMI reports from Europe and the U.S. These timely indicators of economic activity will be crucial in shaping the market’s outlook for 2026. Stronger-than-expected data could challenge the market’s dovish conviction and lead to a reversal in the dollar and a pullback in stocks. Conversely, weak numbers would all but guarantee further Fed easing and could fuel the next leg higher for the year-end rally. Traders will also be on high alert for any further developments out of Japan, as the prospect of a BoJ intervention remains a major wild card for global markets.<\/p>\n\n\n\n Closing Recap U.S. stocks rallied on Thursday, with the major indices recovering all of the prior session’s sharp losses after President Trump signaled a de-escalation in the trade standoff with Europe over Greenland. The S&P 500 jumped, and the Dow also gained, but the real star of the show was the small-cap Russell 2000, which\u2026<\/p>\n","protected":false},"featured_media":0,"template":"","review_category":[4],"class_list":["post-5926","reviews","type-reviews","status-publish","hentry","review_category-daily-reviews"],"acf":[],"yoast_head":"\nIndex<\/td> Up\/Down<\/td> %<\/td> Last<\/td><\/tr> DJ Industrials<\/td> 306.78<\/td> 0.0063<\/td> 49384<\/td><\/tr> S&P 500<\/td> 37.76<\/td> 0.0055<\/td> 6913<\/td><\/tr> Nasdaq<\/td> 211.2<\/td> 0.0091<\/td> 23436<\/td><\/tr> Russell 2000<\/td> 20.6<\/td> 0.0076<\/td> 2718<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Economic Calendar <\/h2>\n\n\n\n
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Asset Class Spotlight: FX, Commodities, Bonds & Crypto<\/h2>\n\n\n\n
Asset<\/td> Up\/Down<\/td> Unit \/ % Change<\/td> Last<\/td><\/tr> WTI Crude<\/td> -1.26<\/td> -0.0208<\/td> 59.36<\/td><\/tr> Gold<\/td> 75.9<\/td> 0.0167<\/td> 4913.4<\/td><\/tr> EUR\/USD<\/td> 0.0041<\/td> 0.0035<\/td> 1.1723<\/td><\/tr> USD\/JPY<\/td> 0.32<\/td> 0.002<\/td> 158.57<\/td><\/tr> Bitcoin<\/td> -2,000+<\/td> -0.022<\/td> 89000<\/td><\/tr> 10-Year Note Yield<\/td> 0.022<\/td> 0.0052<\/td> 0.04275<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n \n
Looking Ahead <\/h2>\n\n\n\n
What to Watch Today<\/h2>\n\n\n\n
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