Global Markets Open the Week Under Pressure Amid Hawkish Fed Signals, Earnings Rush, and Commodity Rout

Index Update:  U.S. stock futures edged lower on Monday as investors braced for a heavy week of earnings from major names including Palantir, Disney, AMD, Alphabet, Amazon and Nvidia, alongside key economic data led by Friday’s jobs report. Sentiment remained cautious following concerns over stalled AI investments, a more hawkish Federal Reserve outlook after Kevin Warsh’s nomination as Fed chair, and lingering volatility across assets after last week’s sharp sell-off in precious metals.

Market Movers:  On Friday, the top gainers were Elong Power Holding Limited. (+3,141.11%), followed by Phoenix Asia Holdings Limited. (+997.44%). On the contrary, Brand Engagement Network Inc. (-52.97%), and Namib Minerals. (-34.87%) declined the most the same day.

Commodities Update:  Oil prices slid sharply on Monday, with both WTI and Brent crude dropping over 5% to below $62 and $66 per barrel, respectively, as easing U.S.–Iran tensions reduced fears of supply disruptions. Signals of renewed diplomatic talks, the absence of planned Iranian naval drills in the Strait of Hormuz, and OPEC+’s decision to keep output unchanged in March all contributed to the pullback from recent multi-month highs driven by earlier geopolitical risks. Precious metals sold off sharply on Monday, with gold plunging over 4% below $4,700 per ounce and silver tumbling more than 10% to around $75, extending last week’s historic declines. The rout was sparked by President Trump’s nomination of hawkish Kevin Warsh to lead the Federal Reserve, prompting heavy profit-taking after a powerful rally driven by safe-haven demand, debt concerns, central bank buying, and speculative momentum—particularly from Chinese investors—which reversed abruptly as sentiment shifted.

Macro Updates:  The dollar index held above 97 after a strong prior-session rise, buoyed by expectations of a more hawkish Federal Reserve following Kevin Warsh’s nomination as Fed chair and prospects of balance sheet tightening. The greenback also strengthened against the yen after Japanese leadership signaled tolerance for currency weakness to support exports, even as markets continued to price in two U.S. rate cuts this year.

Bonds Commentary:  The U.S. 10-year Treasury yield slipped about 2 basis points to 4.22% as risk aversion drove investors toward safe assets and markets reassessed the policy outlook under a potentially more hawkish Fed leadership. Kevin Warsh’s nomination as Fed chair reinforced expectations of a cautious approach to rate cuts and balance sheet tightening, while fiscal uncertainty eased slightly after lawmakers reached a provisional deal to avert a government shutdown.

Futures Update:  U.S. equity futures opened the week under pressure, as steep declines in gold and silver weighed on market sentiment ahead of a busy slate of corporate earnings and key economic releases. Dow Jones futures were down 130 points, or 0.3%, S&P 500 futures slipped 45 points, or 0.7%, while Nasdaq 100 futures fell 250 points, or 1%.

Earlier in the session, stocks experienced fluctuations throughout the trading day on Friday, but overall maintained a predominantly negative bias. The S&P 500 finished the day down 30 points, or 0.43%, closing at 6,939.02. From a technical perspective, the index may continue to decline, as mentioned in previous analysis. The 14-day Relative Strength Index (RSI) remains near the middle of its range, signaling ongoing indecision at current levels. Key support is identified around 6,977, a level that could trigger a rebound, while resistance is observed near 6,840.