Last week, the S&P 500 surged 5.3%, the Nasdaq soared 7.2%, and the Dow Jones rose 3.4%.
US stock prices jumped as market positivity continued to boost more volatile instruments. Crude oil prices increased, but natural gas prices declined as recent implied demand weakened. Safe-haven gold and silver prices eased after India and Pakistan extended their recent ceasefire deal. Platinum and Palladium prices fell as the dollar continued to trade in the higher ranges.
This Week
President Trump and President Putin held a two-hour phone call, agreeing that Russia and Ukraine will continue efforts towards a potential ceasefire. G7 countries will meet in Canada (May 20-May 22) to discuss the global economy, AI, and an EU proposal to cut the price cap on Russian oil from $60 to $50. Iran and the US are scheduled to continue negotiations on a nuclear deal over the weekend. On Thursday, US Initial Jobless claims, Global Manufacturing, and Global Services data will be closely watched by the markets.
Stocks –
NVIDIA
NVIDIA’s stock price soared 10.7% to its highest level since February. Last week, NVIDIA CEO Huang accompanied President Trump on his Middle East tour, where the US and the United Arab Emirates signed an agreement outlining that the largest AI campus outside the United States would be built in the UAE. In early May, the Trump administration outlined that it would abandon a Biden-era rule on restricting sales of the latest AI chips to other countries. The UAE could import up to 500,000 of NVIDIA’s most advanced chips later this year, and other deals with Saudi companies are being secured. On May 28th, the company will post its earnings.
BOEING
Boeing’s stock price climbed 2% as the aircraft manufacturer announced a large contract worth $96 billion to sell up to 210 aircraft to Qatar Airways, after Boeing CEO Ortberg joined President Trump in Doha for a signing ceremony. The order is one of the largest ever and is a major boost for Boeing, which hasn’t posted a profit since 2018. Boeing also secured a $14.5 billion agreement from Etihad to purchase 28 more planes. While the company still faces trade war and regulatory-related challenges, most analysts outline that the Middle East deals could herald a return to challenging Airbus for the number one spot in aircraft orders.
Commodities
Crude Oil
Crude oil prices climbed for the second consecutive week by 1.7%, on increased confidence that the US economy remains on course, amid easing trade tensions. Rumours early in the week suggesting the US and Iran were moving closer to a nuclear deal pressured prices lower, although sources suggest that the two sides remain some distance apart. Ukraine-Russia ceasefire talks broke up without any deal, signaling that any potential return of Russian oil to much of the global market is a long way away.
Gold
Gold prices declined 2.5% as risk-on market sentiment continued to undermine safe-haven instruments. PPI inflation-linked data came in under expectations, confirming market expectations that an additional two interest rate cuts from the Fed are expected this year. A firmer dollar has also pressured the precious metal, which is largely priced in dollars.
Cocoa
Cocoa’s price skyrocketed 20.2% to test a three-month peak after quality concerns over the supply of Ivory Coast’s cocoa crop due to heavy rain in the region, leading to at least 5% of the crop being below standard. Ivory Coast is a major cocoa producer, and export growth is already down by almost 35% since December (to May 11). Weather-related disruptions have led to lower yields in recent months. Cocoa consumption remains strong, and reports suggest that chocolate producers such as Nestle are considering price increases to offset costs.
EUR/USD
The EUR/USD pair declined by 0.58% after a week packed with major economic events that impacted the pair. In Europe, Eurozone inflation was steady at 2.2%, with the EU’s major economy, Germany, mirroring the same rate. ECB officials signaled that further rate cuts are expected soon. In the US, inflation declined slightly to its lowest rate in four years, although markets believe that the Fed will keep rates unchanged in June. This is evidenced by Fed officials’ cautious position on inflation due to fears that tariffs could see a spike in prices.