Global financial markets are in flux as investors digest corporate earnings, economic data, and geopolitical developments. European stocks opened mostly lower, while the Nasdaq underperformed, dragged down by disappointing tech earnings and regulatory concerns. Meanwhile, the dollar weakened, bond markets saw renewed interest, and gold continued its record-breaking rally.

Tech Stocks Weigh on Nasdaq

The Nasdaq Composite is under pressure, with major tech names posting steep losses after earnings. Alphabet (GOOGL) tumbled 7% and AMD dropped 8%, reflecting investor disappointment in their latest financial results. Apple (AAPL) also slid 2.5% as reports surfaced that China is considering a probe into its App Store, adding fresh regulatory uncertainty for the iPhone maker.

EU Prepares Retaliation Against US Big Tech

According to the Financial Times, the European Union is reportedly preparing measures against U.S. tech giants if former President Donald Trump, currently leading in the Republican primaries, returns to office and imposes tariffs on the EU. This signals the potential for renewed trade tensions between the two economic powerhouses, which could impact global markets and multinational corporations.

Currency Markets: Dollar Weakens, Yen Strengthens

The U.S. dollar is losing ground, with the EUR/USD climbing above 1.04. Meanwhile, the Japanese yen is strengthening, driven by positive wage data, which fuels expectations that the Bank of Japan could soon adjust its ultra-loose monetary policy.

Bonds Find Bids Amid Apple Concerns & Treasury Refunding

Investors are shifting towards safer assets, with bonds seeing increased demand. Apple’s slump has contributed to a more cautious market sentiment, while traders also position ahead of Bessent’s first Quarterly Refunding announcement, where the U.S. Treasury will outline its upcoming borrowing plans.

Gold Hits Record Highs, Oil Struggles

Gold continues its record-breaking rally, fueled by ongoing uncertainty in global markets and a weaker dollar. Investors are seeking safety amid economic and geopolitical concerns. Meanwhile, crude oil prices remain under pressure, despite dollar weakness, as demand concerns weigh on the market.

Key Events Ahead

Traders will be watching a busy economic calendar, with key reports including:

• U.S. ADP National Employment Report
• ISM Services PMI
• U.S. International Trade Data
• ECB Wage Tracker
• NBP Policy Announcement (Poland’s Central Bank)
• U.S. Treasury Quarterly Refunding Announcement

Additionally, a host of central bank officials are scheduled to speak, including:

• ECB’s Lane
• Fed’s Barkin, Goolsbee, Jefferson, and Bowman

Major Earnings on Deck

Corporate earnings remain in focus, with major reports expected from:

• Uber (UBER)
• Disney (DIS)
• Ford (F)
• Arm Holdings (ARM)
• Qualcomm (QCOM)

With market volatility rising, investors will be closely monitoring corporate guidance and economic data for further clues on growth prospects, interest rate trajectories, and geopolitical risks.

Markets remain highly sensitive to tech earnings, central bank policies, and geopolitical developments. The weakness in big tech, the strength in gold, and the bid in bonds suggest risk-off sentiment is growing. Investors should brace for potential volatility as key economic data and earnings reports unfold in the coming days.