AI Bets, Gold Strength and Policy Shocks

This week’s trading session highlighted the tension between opportunity and risk. Tech stocks delivered mixed signals, with China’s AI push lifting sentiment even as U.S. giants stumbled. Gold’s strength reinforced safe-haven demand, oil inched higher on supply dynamics, and global currencies steadied ahead of key central bank commentary. For traders, the crosscurrents offered both volatility and opportunity across asset classes.

Tech Faces Mixed Fortunes

Technology remained at the heart of market swings as investors digested fresh headlines. Alibaba surged +6.65% after its CEO pledged stronger investment in artificial intelligence and unveiled the new Qwen3-Max model, reinforcing China’s commitment to competing in the global AI race. By contrast, U.S. tech names faltered, with Nvidia (-2.82%) and Oracle (-4.36%) retreating on valuation concerns despite ongoing AI momentum. Apple also pulled back slightly, while Microsoft drifted lower, underlining how stretched valuations leave little room for disappointment.

Gold Holds Near Highs

Gold stayed resilient, edging higher as safe-haven demand continued to underpin prices. Spot gold traded near record levels, with investors balancing softer economic data against cautious commentary from Federal Reserve Chair Jerome Powell. His remarks that equity markets remain “fairly highly valued” left traders watching closely for the next inflation print, keeping bullion attractive as a hedge in uncertain times.

Oil and Commodities Find Support

Oil prices managed to extend modest gains, with Brent (+0.28%) and WTI (+0.35%) supported by easing oversupply fears and a sharper-than-expected drawdown in U.S. crude inventories. Energy names also benefitted from expectations that geopolitical risks in Russia and the Middle East could tighten supply further, even as global demand signals remain mixed. Base metals, meanwhile, traded flat to lower, reflecting investor caution ahead of fresh manufacturing data from Asia.

Currencies Steady After Powell

In currency markets, the U.S. dollar held broadly steady. The Aussie dollar gained (+0.41%) after hot inflation data raised the likelihood of further Reserve Bank of Australia tightening. The yen was marginally weaker as Japan’s PMI numbers came in softer than expected, while emerging market currencies remained rangebound. Traders are now eyeing Powell’s next speech and U.S. PMI releases for direction into the week’s close.

Corporate and Deal Flow Highlights

Beyond macro, dealmaking and corporate updates shaped sentiment. Walmart-backed PhonePe filed for a $1.3 billion IPO, underscoring investor appetite for Indian fintech. Nio shares ticked higher after Citi placed the stock on its “upside catalyst watch,” while General Motors (-0.51%) slipped following an analyst downgrade. In Europe, Antin Infrastructure Partners announced plans to acquire the U.K.’s largest marina operator, Aquavista, adding momentum to infrastructure-focused investment flows.

SGFX Summary

Markets are balancing AI optimism with valuation caution, while gold’s resilience and oil’s recovery highlight the search for stability. Policy risks from U.S. visa fees to central bank commentary, continue to inject volatility across sectors. For traders, the opportunity lies in identifying dislocations: capitalizing on AI-driven rallies, hedging with gold, and staying agile in commodities and FX as policy signals shift.