Is the Bullish Sentiment Fading? A Market Reversal on the Horizon?

Market Overview

Market sentiment wavered sharply following remarks from President Trump, as investors swung between risk appetite and risk aversion. U.S. Treasury yields continued their downward trend, while the dollar staged a rebound. Although gains were largely pared after the release of the University of Michigan consumer sentiment data, the dollar still posted its first weekly advance in over a month. Meanwhile, momentum in the gold market has notably weakened after several days of heavy selling. Bullish sentiment among both Wall Street institutions and retail investors reversed simultaneously. Gold prices fell more than 1% and closed the week lower, marking the first weekly decline since the announcement of reciprocal tariffs. Spot gold has since edged up slightly to $3,310 per ounce.

Hot Topics to Watch

● Cracks Emerge in U.S.-Russia-Ukraine Negotiations

According to Refinitiv reports, significant shifts are taking place in the U.S.-Russia-Ukraine standoff. On Sunday (April 27), President Trump publicly urged Russia to halt its military operations against Ukraine, while Secretary of State Rubio issued a stern warning: if negotiations remain deadlocked, the U.S. may withdraw from mediation efforts. Territorial disputes and mounting tensions among allies have pushed this three-way geopolitical chess game to a boiling point.

Despite National Security Advisor Waltz‘s assertion that Trump remains committed to brokering peace, core disagreements between the U.S., Russia, and Ukraine persist, while European allies have openly rejected Washington's proposals. With strategic interests spanning geopolitics, energy, and alliances at stake, this standoff is rapidly approaching a dangerous crossroads. Rubio’s threat to pull out of mediation highlights the next two weeks as a critical window that could determine the course of the conflict.

● No Breakthrough in Tariff Negotiations

Diplomats across multiple nations have discovered that fundamental contradictions still plague U.S. demands regarding tariff-related disputes. Although the Trump administration claimed to have received 18 written proposals, Poland‘s finance minister bluntly stated that “this isn’t a negotiation — its merely a discussion of economic grievances.”

While Japan and South Korea engaged in the most substantial talks yet, they only secured a vague acknowledgment of “productive discussions,” leaving exchange rate policies as a looming threat akin to the Sword of Damocles. As finance ministers departed Washington with more questions than answers, one harsh reality became evident: the global economys three pillars — trade, debt sustainability, and U.S. dollar credibility — are all facing an unprecedented stress test.

Key Event to Watch

22:30 US April Dallas Fed Business Activity Index