Rising tariffs could reignite inflation while shifts in global investor confidence may undermine the U.S. dollar's safe-haven status, according to the Federal Reserve's May meeting minutes, which reflect growing concern <a href="https://www.benzinga.com/news/econ-s">over lasting economic headwinds.</a>



<h3 class="wp-block-heading">Tariffs And Inflation: A Risky Combination</h3>



Participants agreed inflation had eased since its 2022 peak but remains "somewhat elevated" and could accelerate due to new trade barriers. 



"Participants judged that it was likely to be boosted by the effects of higher tariffs, although significant uncertainty surrounded those effects," the minutes stated. 



Reports from businesses and surveys suggest that "firms generally were planning to either partially or fully pass on tariff-related cost increases to consumers."



Some participants warned that even firms unaffected by tariffs might use the price environment as cover to raise their own.



Several Fed officials noted rising short-term inflation expectations in markets and surveys, which could pressure firms to keep raising prices. 



Although long-term expectations remain anchored, the risk of upward drift remains. "Some participants saw the risk that they could drift upward, which could put additional upward pressure on inflation," according to the minutes.



Tariffs on intermediate goods and related supply chain disruptions were seen as potentially contributing to "a more persistent increase in inflation," echoing the kind of price stickiness seen during the pandemic era.



<h3 class="wp-block-heading">US Assets And Financial Volatility: A Growing Concern</h3>



Multiple participants raised alarms over financial market behavior in April, highlighting that "heightened volatility" had emerged across asset classes. 



Particularly notable was the unusual pattern of longer-term Treasury yields rising while the dollar depreciated, even as equity prices fell.



Such a divergence, they said, could signal deeper shifts. 



"Participants noted that a durable shift in such correlations or a diminution of the perceived safe-haven status of U.S. assets could have long-lasting implications for the economy."



These concerns intersect with broader financial vulnerabilities. While household and corporate balance sheets appear healthy, some participants flagged "high levels of leverage at hedge funds" and potential risks from the private credit market. 



They added that higher rates or an economic downturn could amplify these issues.



<h3 class="wp-block-heading">Labor Market: Resilient But At Risk</h3>



The Fed found labor market conditions to be "broadly in balance," with unemployment stable and layoffs low. But some businesses have started "limiting or pausing hiring because of elevated uncertainty," and participants acknowledged a growing risk of labor market weakness in the months ahead.



Importantly, officials downplayed the labor market as a major inflation driver for now. "Several participants commented that labor market conditions were unlikely to be a source of inflationary pressure."



<h3 class="wp-block-heading">Economic Growth: Stable, But Threatened by Policy Uncertainty</h3>



The Fed recognized solid economic momentum, with consumer spending strong in March and private domestic final purchases—a key growth measure—rising in the first quarter. Yet, real GDP dipped slightly, possibly due to statistical quirks involving a surge in pre-tariff imports.



Even so, sentiment is softening. "Several participants noted that their contacts or surveys reported sharp declines in business sentiment," and many firms are delaying capital expenditures. Retailers, manufacturers and small businesses appear most exposed to tariff pressures.



<h3 class="wp-block-heading">Market Reactions</h3>



Stocks remained broadly unchanged in reaction to the minutes, with the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) still down 0.1% for the day. 



Yields on 30-year Treasury bonds slightly softened to 4.98%, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) trimming session losses.



The dollar held onto session gains, with the U.S. dollar index, which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), up 0.3%. 



Read now: <a href="https://www.benzinga.com/25/05/45644145/nvidia-stock-is-bullish-ahead-of-q1-earnings-but-will-h20-chip-woes-dampen-the-party">Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?</a>



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<a href="https://www.benzinga.com/25/05/45644145/nvidia-stock-is-bullish-ahead-of-q1-earnings-but-will-h20-chip-woes-dampen-the-party"> </a>

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Federal Reserve Minutes Flag Tariff-Driven Inflation, Eye US Market Volatility As Economic Risk

After a sharp Tuesday rally fueled by optimism over improved U.S.-EU trade ties, Wall Street stalled midweek as rising Treasury yields reasserted pressure ahead of Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&#8217;s earnings report and the release of<a href="https://www.benzinga.com/topic/federal-reserve"> key Federal Reserve minutes.</a>



Major U.S. stock indexes paused on Wednesday, digesting recent gains as yields on longer-term Treasury bonds resumed their climb. The S&amp;P 500 slipped 0.2% to 5,900 points by midday in New York, while the tech-heavy Nasdaq 100 held flat. Small-cap stocks underperformed sharply, with the Russell 2000 down 0.8%.



Sector performance was broadly negative, with 9 of the 11 S&amp;P 500 sectors trading lower. Technology and communication services were the only sectors managing to avoid losses. 



All eyes are on Nvidia, which is set to report earnings after Wednesday's closing bell. Wall Street expects earnings per share of 88 cents and revenue of $43.2 billion, according to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a> estimates.



Beyond the headline figures, investors will be closely watching two key aspects: the impact of the U.S. export ban on the H20 chips destined for China and the forward guidance. CEO Jensen Huang already said the company could face a $5 billion annual earnings hit due to export restrictions, making this quarter&#8217;s outlook pivotal for market sentiment.



The Federal Reserve's minutes from its May meeting will also be released. The Federal Open Market Committee left rates unchanged in the 4.25%-4.50% range. Chair Jerome Powell signaled little urgency to cut rates, citing inflation risks partly tied to newly proposed trade tariffs.



Markets will parse the minutes for hints on the Fed's timeline for easing monetary policy, particularly as inflation data remains stubbornly elevated.



After a brief relief, bond markets came under renewed pressure. The yield on the 30-year Treasury note climbed 5 basis points to 5%, while the 10-year yield rose to 4.5%. Investors remain concerned about the trajectory of U.S. fiscal policy, with swelling budget deficits raising doubts about long-term debt sustainability.



The U.S. dollar rallied for a second straight session, decoupling from other U.S. assets. Meanwhile, gold slipped 0.2%, dipping below $3,300 per ounce. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 2%, trading near $107,000 as speculative appetite in cryptocurrencies waned.



<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %</td></tr><tr><td>Nasdaq 100</td><td>21,427.45</td><td>0.0%</td></tr><tr><td>S&amp;P 500</td><td>5,908.48</td><td>-0.2%</td></tr><tr><td>Dow Jones</td><td>42,230.96</td><td>-0.3%</td></tr><tr><td>Russell 2000</td><td>2,074.61</td><td>-0.8%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 12:10 p.m. ET</figcaption></figure>



According to&nbsp;Benzinga Pro&nbsp;data:



<ul class="wp-block-list">
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.2% down to $589.76.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased 0.3% to $422.71.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;held steady at $521.25.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.8% to $206.15.</li>



<li>The&nbsp;Communication Select&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) outperformed, up 0.2%; the&nbsp;Utilities&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.3%.</li>
</ul>



<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>



<ul class="wp-block-list">
<li>Vail Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) rallied over 12% – on pace for the strongest one-day rally since March 2020 – after the company announced the reappointment of Rob Katz as CEO. </li>



<li>GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) fell almost 10% after announcing the purchase of 4,710 Bitcoin.</li>
</ul>



Stocks reacting to earnings reports include: 



<ul class="wp-block-list">
<li>HEICO Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HEI#NYSE">HEI</a>) up 6.67%</li>



<li>Okta, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OKTA#NASDAQ">OKTA</a>) down 14.62%</li>



<li>DICK&#8217;S Sporting Goods, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DKS#NYSE">DKS</a>) up 1.89%</li>



<li>Abercrombie &amp; Fitch Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) up 18.83%</li>



<li>Macy&#8217;s, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>) up 1.46%</li>



<li>Capri Holdings Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPRI#NYSE">CPRI</a>) up 3.45%</li>
</ul>



Stocks slated to report earnings after the close include Nvidia Corp, Agilent Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/A#NYSE">A</a>), Synopsys Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>), HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>), Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), Nordson Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NDSN#NASDAQ">NDSN</a>), e.l.f. Beauty Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELF#NYSE">ELF</a>), nCino Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCNO#NASDAQ">NCNO</a>), C3.ai Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>), Veeva Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEEV#NYSE">VEEV</a>), Pure Storage Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSTG#NYSE">PSTG</a>), and SentinelOne Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>).



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45645056/gold-etf-bleeds-money-at-fastest-pace-in-3-years-is-the-safe-haven-trade-over">Gold ETF Bleeds Money At Fastest Pace In 3 Years — Is The Safe-Haven Trade Over?</a></li>
</ul>



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Wall Street Stalls As Treasury Yields Climb Again Ahead Of Nvidia Earnings, Fed Minutes: What's Driving Markets Wednesday?

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is charging into its first-quarter earnings report on Wednesday with strong technical momentum, but investors might want to buckle up. Wall Street is expecting the company to report 88 cents in earnings on $43.21 billion revenue for the quarter, as it reports <a href="https://www.benzinga.com/quote/NVDA/earnings">after market hours</a>.



While the charts are flashing bullish signals, Wall Street is bracing for what could be a messy quarter, driven not by a lack of demand—but by supply chain snarls tied to China's restrictions and the high-profile H20 chip delay.



Read Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/05/45616366/nvidias-q1-earnings-loom-while-amds-edge-ai-bet-could-change-the-narrative">Nvidia&#8217;s Q1 Earnings Loom, While AMD&#8217;s Edge AI Bet Could Change The Narrative</a>



<h2 class="wp-block-heading">Nvidia Stock Chart Bullish Ahead Of Q1 Earnings</h2>



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0528"><img loading="lazy" decoding="async" width="631" height="486" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28085308/Screenshot-2025-05-28-at-2.46.41-PM.png" alt="" class="wp-image-929873" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28085308/Screenshot-2025-05-28-at-2.46.41-PM.png 631w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28085308/Screenshot-2025-05-28-at-2.46.41-PM-300x231.png 300w" sizes="(max-width: 631px) 100vw, 631px" /></a></figure>



<a href="https://www.benzinga.com/pro/register?utm_adType=bzprocontent&amp;utm_campaign=14daytrial&amp;utm_ad=0528">Chart created using Benzinga Pro</a>



On the technical front, Nvidia stock looks rock solid. The stock is trading at $135.50, well above its eight-day, 20-day and 50-day simple moving averages (SMAs)—$134.03, $125.44, and $115.39, respectively. The 200-day SMA also trails at $126.47, further reinforcing the bullish setup for Nvidia stock. 



The Moving Average Convergence Divergence (MACD) indicator stands at 6.31, suggesting upward momentum remains intact. Meanwhile, the Relative Strength Index (RSI) is at 68.00, inching closer to the overbought territory but still showing healthy buying pressure.



Despite these bullish signals, not everyone is convinced the upcoming earnings will sustain Nvidia's rally.



<h2 class="wp-block-heading">Guidance Could Trim By 10% &#8211; Says Investment Strategist </h2>



Stephanie Link, chief investment strategist at Hightower Advisors, is not expecting fireworks. "I don't think it is going to be a catalyst quarter. It's noisy– you have the China restrictions, etc. So, July quarter guidance probably has to come down because of the H20 issue," she warned, estimating the impact could shave off about 10% from outlook expectations.



The H20 chip, a modified version of Nvidia's flagship AI hardware designed to comply with U.S. export controls, has hit production snags in China, one of Nvidia's key growth markets. Add in chatter about slower rack production and power supply constraints, and it&#8217;s clear why sentiment is mixed.



Still, Link argues that these are supply, not demand, problems. "They're going to do about $5 in earnings power, this year I would assume," she added, signaling long-term confidence despite short-term turbulence.



With Nvidia stock up nearly 25% in the past month, optimism is already baked in. Whether the stock extends its bullish run may hinge on how investors digest potentially weak guidance—especially if it&#8217;s seen as a temporary blip rather than a structural concern.



Read Next: 



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/25/05/45640667/nvidia-supplier-asml-loses-over-130-billion-in-market-cap-amid-china-export-curbs-trump-tariff-uncertainty">Nvidia Supplier ASML Loses Over $130 Billion In Market Cap Amid China Export Curbs, Trump Tariff Uncertainty</a></li>
</ul>



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Nvidia Bullish Ahead Of Q1 Earnings, But Will H20 Chip Woes Dampen The Party?

A major gold exchange-traded fund recorded its steepest capital exodus in nearly three years this May, casting doubts over investor appetite for traditional safe-haven assets—but some analysts suggest the bull cycle <a href="https://www.benzinga.com/topic/gold">is far from over.</a>



<h3 class="wp-block-heading">$2.1 Billion Outflows Rock SPDR Gold ETF</h3>



The SPDR Gold Trust ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) saw outflows totaling $2.1 billion in May, marking its worst monthly withdrawal since July 2022. 



The sell-off follows three straight months of heavy inflows, during which the fund attracted approximately $7.5 billion, reflecting a major reversal in sentiment.



The outflows come as gold prices moved sideways in May, set to close the month broadly unchanged after a robust four-month rally that pushed prices to a record high of $3,500 an ounce in mid-April.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="535" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-1024x535.png" alt="" class="wp-image-929914" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-1024x535.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-300x157.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-768x401.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-1536x803.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28091555/image-364-2048x1070.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">US-China Truce Dampens Demand For Gold</h3>



A key reason behind the fading appetite for gold appears to be the May 12 trade agreement between the U.S. and China, which saw both nations slash tariffs by 115 percentage points and resume negotiations. 



That same day, gold plunged 2.7%, its sharpest daily decline since November 2024. With geopolitical fears cooling, some traders may be reallocating capital away from defensive assets like gold.



The S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), is up 6.7% in May, eyeing its strongest month since November 2023, reflecting investor shift towards riskier assets. 



Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reached record highs at $112,000, and is up 16% for the month. 



<h3 class="wp-block-heading">Long-Term Bull Run Still Intact?</h3>



Despite May's weakness, gold remains one of 2025's standout assets. In the first five months of the year, gold has rallied 26%, outperforming all major asset classes. 



For comparison, the S&amp;P 500 is up just 0.6%, the U.S. dollar is down 8%, long-dated Treasuries – tracked by the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) – have fallen 3%, and Bitcoin has gained 16%.



Gold's current bullish wave dates back to October 2022, from which prices have doubled. In the past 14 months, gold closed 11 months in positive territory—a clear indication of sustained bullish momentum.



<h3 class="wp-block-heading">Expert Views: Has Gold Peaked Or Is More to Come?</h3>



"It's difficult to work out what gold may do next," said David Morrison, senior market analyst at Trade Nation. He noted that gold's MACD (moving average convergence divergence) momentum indicator has retreated from overbought levels, signaling potential upside. 



"While this means that gold has the potential to rally from here&#8230;it could be that gold has already topped."



Still, structural demand trends are giving bulls hope.



Goldman Sachs Research expects prices to reach $3,700 per ounce by year-end, driven by safe-haven buying and central bank diversification.



 "Long gold positions sharply improve risk-adjusted portfolio returns during periods where U.S. institutional credibility is challenged," Daan Struyven, commodity analyst at Goldman Sachs, said. 



He highlighted rising public debt and geopolitical fragmentation as key long-term catalysts for higher gold prices. According to Struyven, if private investors shift even a small portion of assets from equities or Treasuries to gold, the price could exceed $4,000 by mid-2026.



Another persistent tailwind is central bank gold demand, which surged after Western sanctions froze Russia's reserves in 2022. Emerging markets, underweight in gold relative to developed peers, are expected to keep buying aggressively. 



Struyven said this trend could account for a 21% base-case gold return by mid-2026.



Now Read:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45622854/trump-may-be-smoking-in-the-dynamite-shed-as-the-big-beautiful-bill-drives-bond-yields-higher">Trump May Be &#8216;Smoking In The Dynamite Shed&#8217; With The Big, Beautiful Bill Pressuring Yields Higher</a></li>
</ul>



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Gold ETF Bleeds Money At Fastest Pace In 3 Years — Is The Safe-Haven Trade Over?

A global equity index that excludes U.S. companies has broken above levels last seen before the 2008 financial crisis, marking a key technical breakout and posing a direct challenge to the long-standing American market dominance known as <a href="https://www.benzinga.com/markets/25/05/45491438/mohamed-el-erian-says-era-of-us-exceptionalism-is-paused-but-not-over-yet-too-early-to-say-if-the-damage-inflicted-is-irreversible">the &#8220;U.S. exceptionalism trade.&#8221;</a>



Between September 2009 and late 2024, U.S. stocks outperformed global equities by an astonishing 340 percentage points, reinforcing the narrative of American market supremacy. But that narrative is now facing growing skepticism.



Still, May's rebound in the S&amp;P 500 suggests the U.S. isn't ready to relinquish its lead just yet.



<h3 class="wp-block-heading">Global Equities Rally, Led By German Defense Powerhouse</h3>



On May 28, the iShares MSCI ACWI ex U.S. ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACWX#NASDAQ">ACWX</a>) surged to $59.58, its highest price since April 2008. The milestone marks a significant recovery for international equities, which have long trailed their U.S. counterparts.



This market is up 14% year-to-date, beating the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) by roughly 13 percentage points—a record pace of relative outperformance since ACWX's 2008 inception. 



The rally reflects growing investor interest in markets outside the U.S., fueled by concerns over American political risks and debt sustainability. 



Yet, in May, the tide shifted slightly. The S&amp;P 500 has gained 6.7% so far this month—on track for its strongest performance since November 2023—while ACWX has risen 4.7%. It's the first month since January when U.S. equities have outpaced international ones.



A select group of seven global stocks has more than doubled year-to-date, with gains ranging from 104% to over 200%. Most operate in the defense or energy sectors, two industries booming amid rising geopolitical tensions and infrastructure overhauls.



<ol class="wp-block-list">
<li>Rheinmetall AG (OTCPK: RNMBF) – German weapons and tank maker, up 207% on Europe's defense spending boom.</li>



<li>Hyundai Rotem (OTCPK: HYROF) – South Korean military and rail equipment producer, up 184%.</li>



<li>Hanwha Co. Ltd (OTCPK: HWANF) – Jet engine and missile maker from South Korea, up 172% amid rising global arms demand.</li>



<li>Doosan Enerbility (OTCPK: DOOSF) – South Korean energy firm, up 141%, with nuclear and hydrogen driving growth.</li>



<li>Hanwha Ocean – Builds submarines and LNG ships in South Korea, up 111% this year.</li>



<li>Leonardo S.p.A. (OTCPK: FINMF) – Italy's top defense contractor, up 109%, benefiting from EU rearmament.</li>



<li>Saab AB (OTCPK: SAABF) – Swedish defense firm known for Gripen jets, up 104%. </li>
</ol>



<h3 class="wp-block-heading">Technicals Support Global Outperformance</h3>



Bank of America's chief technical analyst Paul Ciana views the breakout in the MSCI World ex-U.S. index as more than symbolic.



In a note shared Tuesday, he noted a "technically constructive picture," highlighting key factors such as:



<ul class="wp-block-list">
<li>A rising 50-week simple moving average</li>



<li>A resilient 14-week relative strength index above 40</li>



<li>A bullish MACD (Moving Average Convergence Divergence) signal</li>



<li>A relative ratio vs. the S&amp;P 500 breaking higher in early 2025</li>
</ul>



Ciana said this offers &#8220;the next best chance for the world to outperform the U.S.&#8221;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="535" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-1024x535.png" alt="" class="wp-image-930050" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-1024x535.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-300x157.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-768x401.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-1536x803.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/05/28101506/image-365-2048x1070.png 2048w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Backdrop: Cracks In The US Exceptionalism Trade</h3>



The U.S. equity market reached record highs in February 2025, a month after Trump's return to the White House. 



Yet, fears surrounding his administration's aggressive tariff strategy—temporarily paused for 90 days—sparked synchronized April selloffs across U.S. stocks, bonds and the dollar.



A May 2025 downgrade of the U.S. credit rating by Moody's intensified concerns over debt sustainability and the long-term dominance of American assets.



According to Oxford Economics, the downgrade "reinforces the narrative of de-dollarization, credibility erosion and exceptionalism fatigue."



Still, some believe the dollar's primacy remains unchallenged.



"The fact that the U.S. dollar is the world reserve currency has been core to the U.S. exceptionalism thesis," said Savita Subramanian, equity strategist at Bank of America. "No other country has the option, albeit a bad one, of printing money to pay their debt."



&#8220;Political gridlock, massive deficits, and trade protectionism have cast doubt on the durability of the dollar's dominance. But for all the grumbling, there's still no real alternative,&#8221; said veteran Wall Street strategist Ed Yardeni.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45616116/trumps-tariffs-may-trigger-an-inflation-shock-but-not-a-lasting-one-goldman-sachs-says">Trump&#8217;s Tariffs May Trigger An Inflation Shock &#8211; But Not A Lasting One, Goldman Sachs Says </a></li>
</ul>



Photo: Shutterstock

ACWX

DOOSF

FINMF

RNMBF

SAABF

Wall Street Dominance Faces Crucial Test As Global Stocks Soar To 2008 Highs

U.S. stock futures were trading below the flatline on Wednesday after rallying on Tuesday. Futures of major benchmark indices declined in premarket.



Investors will eye the technology bellwether Nvidia Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) first-quarter earnings, which will be announced after the market closes.



The S&amp;P 500 broke a four-day losing streak on Tuesday as the markets opened after a long weekend following Memorial Day. The stocks got a boost from President Donald Trump&#8216;s <a href="https://www.benzinga.com/25/05/45603240/trump-agrees-to-extend-50-tariffs-on-europe-until-july-9-it-was-my-privilege-to-do-so">extension of the 50% tariffs</a> on Sunday till July 9th, which he had initially announced on Friday.



Meanwhile, the 10-year Treasury bond yielded 4.47% and the two-year bond was at 3.96%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>&#8216;s projections show markets pricing a 97.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting. 



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Dow Jones</td><td>-0.25%</td></tr><tr><td>S&amp;P 500</td><td>-0.22%</td></tr><tr><td>Nasdaq 100</td><td>-0.20%</td></tr><tr><td>Russell 2000</td><td>-0.39%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, fell in premarket on Wednesday. The SPY was down 0.25% to $589.65, while the QQQ declined 0.22% to $520.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



U.S. stocks settled higher Tuesday, with information technology, consumer discretionary, and communication services leading gains across all S&amp;P 500 sectors.



In corporate news, AutoZone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) reported weaker third-quarter earnings, while E2open Parent Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETWO#NYSE">ETWO</a>) surged 25% on news of a $2.1 billion acquisition by WiseTech Global.



On the economic front, March&#8217;s S&amp;P CoreLogic Case-Shiller Home Price Index rose 4.1% year-over-year, and new manufactured goods orders dipped 6.3% in April.



<figure class="wp-block-table is-style-stripes"><table class="has-fixed-layout"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>2.47%</td><td>19,199.16</td></tr><tr><td>S&amp;P 500</td><td>2.50%</td><td>5,921.54</td></tr><tr><td>Dow Jones</td><td>1.78%</td><td>42,343.65</td></tr><tr><td>Russell 2000</td><td>2.48%</td><td>2,090.40</td></tr></tbody></table></figure>



Insights From Analysts:



Jurrien Timmer, the director of global macro at Fidelity Investments, explained in his note that the <a href="https://www.benzinga.com/25/05/45637914/jurrien-timmer-says-cyclical-bull-market-likely-over-in-feb-2025-expects-rangebound-scenario-modest-bear-market-is-now-underway">market was rangebound</a> and lower and upper boundaries for the market have been set. 



He highlighted that stocks were down 20% and they have recovered since, "That suggests that while the lower boundary for this market correction may have been established, so has the upper boundary."



"All this puts me firmly in the trading range camp in terms of what the next 6-12 months will bring. I suspect that this range might be defined by the April low of 4835 as the lower boundary, and the recent highs of 6000 as the upper boundary," he explained.



If Timmer&#8217;s range-bound market forecast holds, the cyclical bull market that began in October 2022 likely concluded in February 2025, after 30 months.



He added that "a new modest bear market is now underway," saying, "Bear markets consist of both a price and time element, and if this one lasts 6-12 months it would meet both conditions."



Meanwhile, Fabio Bassi, JPMorgan&#8217;s head of cross-asset strategy, also told CNBC that the S&amp;P 500 could &#8220;remain rangebound, with limited short-term upside.&#8221; &#8212; <a href="https://www.cnbc.com/2025/05/27/dont-expect-the-market-to-go-anywhere-this-summer-says-jpmorgan.html" title="https://www.cnbc.com/2025/05/27/dont-expect-the-market-to-go-anywhere-this-summer-says-jpmorgan.html">https://www.cnbc.com/2025/05/27/dont-expect-the-market-to-go-anywhere-this-summer-says-jpmorgan.html</a>



&#8220;The rally to our bull case scenario of 5,800 for S&amp;P 500 has played out, but from here we expect a consolidation and range-bound dynamic," Bassi explained.



Meanwhile, Ed Yardeni said in his note that &#8220;The widely feared global sovereign debt crisis has been postponed for another day.&#8221;



The yields on super-long Japanese government bonds (JGBs) fell sharply on Tuesday after Reuters reported that the country&#8217;s finance ministry might issue fewer of these bonds.



He explained that this &#8220;helped to bring down the US 10-year Treasury yield from 4.51% on Friday to 4.46% (On Tuesday).&#8221;



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Wednesday:



<ul class="wp-block-list">
<li>Minneapolis Fed President Neel Kashkari will speak in Tokyo again at 4:00 a.m., and minutes of the Fed&#8217;s May FOMC meeting will be out by 2:00 p.m. ET.</li>
</ul>



Stocks In Focus:



<ul class="wp-block-list">
<li>DICK&#8217;S Sporting Goods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DKS#NYSE">DKS</a>) fell 0.63% in premarket on Wednesday as analysts expect it to report quarterly earnings of $4.34 per share on revenue of $3.59 billion, before the opening bell.</li>



<li>Abercrombie &amp; Fitch Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) was up 0.51% ahead of its earnings, which are supposed to be released before the opening bell. Analysts expect earnings of $1.40 per share on revenue of $1.08 billion.</li>



<li>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was 0.044% above the flatline as analysts expect it to report quarterly earnings of 88 cents per share on revenue of $43.54 billion, after the closing bell.</li>



<li>HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) advanced 0.39% ahead of its earnings, which are supposed to be released after the closing bell. Analysts expect earnings of 80 cents per share on revenue of $13.15 billion.</li>



<li>Box Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOX#NYSE">BOX</a>) surged 11.48% after posting better-than-expected first-quarter results and raised its FY2026 guidance after Tuesday's closing bell.</li>



<li>Macy&#8217;s Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/M#NYSE">M</a>) was 1.08% higher as analysts expect it to report quarterly earnings of 15 cents per share on revenue of $4.43 billion, before the opening bell.</li>



<li>Travelers Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) was 0.14% lower after it signed a definitive agreement to sell the personal insurance business and the majority of the commercial insurance business of Travelers Canada to Definity Financial Corporation.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.77% to hover around $61.36 per barrel.



Gold Spot US Dollar rose 0.67% to hover around $3,322.61 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was higher by 0.01% at the 99.5330 level.



Asian markets closed lower on Wednesday except South Korea's Kospi index. China&#8217;s CSI 300, India's S&amp;P BSE Sensex, Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng indices fell. European markets were also lower in early trade.



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/general/market-summary/25/05/45635906/sp-500s-expensive-valuation-combined-with-all-time-high-household-holdings-a-look-at-where-us-stock-market-stands">S&amp;P 500&#8217;s Expensive Valuation Combined With All-Time High Household Holdings: A Look At Where US Stock Market Stands </a></li>
</ul>



Photo courtesy: godongphoto / Shutterstock.com

Market Summary

News

Futures

Pre-Market Outlook

Markets

ETWO

US Stocks Likely To Open Lower Ahead Of Nvidia's Q1 Earnings: 'A New Modest Bear Market Is Now Underway,' Says Expert

Florida Governor Ron DeSantis has enacted a new law, opening the doors for transactions using gold and silver in the state. This move is seen as a nod to the original &#8220;gold standard.&#8221;



What Happened: DeSantis signed the bill, HB 999, into law, allowing Floridians to use gold and silver for transactions. DeSantis hailed this as a &#8220;landmark piece of legislation,&#8221; offering residents &#8220;more independence&#8221; from a fiat currency, <a href="https://www.firstcoastnews.com/article/news/regional/florida/desantis-signs-bill-allowing-transactions-using-gold-silver-in-florida/77-fc00a45a-4a45-439f-befa-8ba2933722e7">reported</a> First Coast News.



Under the new law, gold and silver are now exempt from sales tax, and money services businesses like PayPal (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) are allowed to send and receive payments using these metals.



DeSantis expressed that the metals will serve as &#8220;real currency again&#8221; and not just &#8220;investment vehicles for the wealthy.&#8221; He believes that the law would enable Florida residents to safeguard themselves against &#8220;the declining dollar.&#8221;&nbsp;As of now, fewer than a quarter of all states—including Louisiana, Texas, South Carolina, and Utah—recognize gold and silver as legal tender. The new law is scheduled to go into effect on July 1, 2026. SEE ALSO:&nbsp;<a href="https://benzinga.com/news/25/05/45635854/elon-musk-disappointed-with-trumps-big-beautiful-bill-says-it-undermines-the-work-that-the-doge-team-is-doin" target="_blank" rel="noreferrer noopener">Elon Musk &#8216;Disappointed&#8217; With Trump&#8217;s &#8216;Big Beautiful Bill,&#8217; Says It &#8216;Undermines The Work That The DOGE Team Is Doing&#8217;</a>



Why It Matters: This move comes at a time when the U.S. dollar&#8217;s confidence is wavering. The recent slide of the U.S. dollar has <a href="https://www.benzinga.com/markets/commodities/25/05/45617358/gold-demand-holds-firm-as-dollar-confidence-wavers">reignited </a>investor interest in gold. Factors such as geopolitical uncertainty and concerns over the long-term sustainability of American fiscal policy have been driving this trend.



Moreover, the U.S. dollar was <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45608523/the-dollar-is-15-20-overvalued-and-history-says-it-wont-last">trading </a>15–20% above its long-term fair value. Analysts at KKR &amp; Co. Inc. predicted the era of dollar-fueled outperformance in U.S. assets was likely nearing its end. According to them, the greenback may gradually fall below its fair value and stay weak for years, correcting its overvaluation through a prolonged, steady decline rather than a sharp crash.



SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) surged 39.56% over the past year, while the US Global GO GOLD and Precious Metal Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOAU#NYSE">GOAU</a>) soared 36.78%. 



<ul class="wp-block-list">
<li>READ MORE:&nbsp;<a href="https://benzinga.com/news/25/04/44778357/giuliani-criticizes-trumps-doj-and-fbi-im-very-upset-right-now" target="_blank" rel="noreferrer noopener">Giuliani Criticizes Trump&#8217;s DOJ and FBI: &#8216;I&#8217;m Very Upset Right Now&#8217; &#8211; Benzinga</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

GOAU

PYPL

Ron DeSantis Signs Law Allowing Gold, Silver For Transactions In Florida, Citing 'Declining Dollar' Concerns

The U.S. government will retain significant control over United States Steel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) through a golden share arrangement as part of Nippon Steel Corp.&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NPSCY#OTC">NPSCY</a>) proposed $14.9 billion acquisition, according to Sen. David McCormick (R-Pa.). 



What Happened: The golden share mechanism will grant Washington veto power over key operational decisions at the iconic American steelmaker. 



McCormick <a href="https://www.youtube.com/watch?v=QL71vaeEvn0">told</a> CNBC that the arrangement requires U.S. government approval for certain board appointments and prevents production cuts without federal consent.



&#8220;It&#8217;ll be a U.S. CEO, a U.S. majority board and then there will be a golden share, which will essentially require U.S. government approval of a number of the board members,&#8221; McCormick said on Tuesday. The structure ensures &#8220;production levels aren&#8217;t cut and things like that.&#8221;



The arrangement stems from a national security agreement (NSA) the companies will sign with the U.S. government, according to McCormick. However, two sources told Reuters the golden share concept remains under consideration and has not been finalized.



See Also: <a href="https://www.benzinga.com/25/05/45637573/chinas-robot-dog-lead-could-outpace-us-humanoid-efforts-says-ark-invest-a-hole-in-tesla-figure-and-apptroniks-portfolio">China&#8217;s Robot Dog Lead Could Outpace US Humanoid Efforts: &#8216;A Hole In Tesla, Figure And Apptronik&#8217;s Portfolio,&#8217; Says Analyst</a>



Why It Matters: U.S. Steel shares climbed 1.98% to $53.04 on Tuesday. The stock has surged over 20% since President Donald Trump&#8216;s <a href="https://www.benzinga.com/25/05/45596866/president-trump-approves-us-steel-nippon-steel-partnership">recent social media endorsement of what he termed</a> a &#8220;planned partnership.&#8221;



The deal faced opposition from both Trump and former President Joe Biden, who formally <a href="https://www.benzinga.com/markets/equities/25/05/45510183/nippon-steel-pledges-14-billion-including-new-us-mill-to-win-trumps-approval-for-us-steel-deal-report">blocked it in January</a>, citing national security concerns. 



Trump launched a fresh Committee on Foreign Investment review in April. His recent <a href="https://www.benzinga.com/25/05/45596866/president-trump-approves-us-steel-nippon-steel-partnership">approval came with conditions</a> that the partnership create &#8220;at least 70,000 jobs&#8221; and inject &#8220;$14 billion into the U.S. economy.&#8221; The president emphasized that U.S. Steel would remain &#8220;controlled by the USA.&#8221;



Photo courtesy: Poetra.RH / Shutterstock.com



Read Next:



<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45637573/chinas-robot-dog-lead-could-outpace-us-humanoid-efforts-says-ark-invest-a-hole-in-tesla-figure-and-apptroniks-portfolio">China&#8217;s Robot Dog Lead Could Outpace US Humanoid Efforts: &#8216;A Hole In Tesla, Figure And Apptronik&#8217;s Portfolio,&#8217; Says Analyst</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

NPSCY

US Government To Hold Strategic Control Over US Steel In $14.9 Billion Nippon Deal, David McCormick Says

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the &#8220;Greed&#8221; zone on Tuesday.



U.S. stocks settled higher on Tuesday, with the Dow Jones jumping more than 700 points during the session to snap a four-day losing streak amid renewed optimism surrounding trade talks between the U.S. and the European Union. President Donald Trump announced the extension of the 50% tariffs on Sunday till July 9, which he had initially announced on Friday.



AutoZone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) reported weaker-than-expected third-quarter earnings. Shares of E2open Parent Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETWO#NYSE">ETWO</a>) jumped around 25% after the company announced WiseTech Global will acquire them for $2.1 billion in an all-cash deal.



On the economic data front, the S&amp;P CoreLogic Case-Shiller Home Price Index increased 4.1% year-over-year in March, following a 4.5% gain in February. New orders for manufactured goods dipped by 6.3% to $296.3 billion in April, recording the sharpest decline since January 2024.



All sectors on the S&amp;P 500 closed on a positive note, with information technology, consumer discretionary and communication services stocks recording the biggest gains on Tuesday.



The Dow Jones closed higher by around 741 points to 42,343.65 on Tuesday. The S&amp;P 500 jumped 2.05% to 5,921.54, while the Nasdaq Composite gained 2.47% to 19,199.16 during Tuesday's session.



Investors are awaiting earnings results from DICK&#8217;S Sporting Goods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DKS#NYSE">DKS</a>), HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) and Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 65, the index remained in the &#8220;Greed&#8221; zone on Tuesday, versus a prior reading of 63.9.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/05/45616471/jim-cramer-says-rocket-is-a-very-fine-company-recommends-buying-this-health-care-stock">Jim Cramer Says Rocket Is A &#8216;Very Fine&#8217; Company, Recommends Buying This Health Care Stock</a> </li>
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Photo courtesy: Shutterstock

Earnings

Dow Surges Over 700 Points Following EU Tariff Delay: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone

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