As global financial markets paused to catch their breath, a tangle of shifting forces reshaped the investment landscape on Thursday. The early-week optimism faded as stocks faltered, the dollar stumbled, and traders recalibrated expectations ahead of key U.S. data releases. Meanwhile, Treasury yields climbed, with the benchmark 10-year hitting a one-month high. Much of this move stemmed from mounting concerns over President Trump’s proposed budget plan, which is expected to inject trillions into the national debt—sparking fresh questions about long-term fiscal stability.
In the digital asset space, Ethereum staged a remarkable comeback, surging 65% over the past month. After trailing behind Bitcoin—whose dominance recently solidified with a rise above $100,000—Ethereum appears to be regaining its momentum. Analyst Gautam Chhugani from Bernstein attributes the lag in Ethereum’s prior performance to a shift in retail investor activity, much of which moved to Layer 2 networks like Coinbase’s Base. Additionally, emerging platforms such as Solana attracted new decentralized applications, diluting Ethereum’s market share. However, with renewed institutional interest and improved scalability, ETH is beginning to narrow the gap.
Oil markets, on the other hand, faced downward pressure. Brent and WTI crude prices fell over 1.6% in early Asian trading after a report indicated Iran’s readiness to sign a nuclear deal—if the U.S. lifts all sanctions. This development, paired with an unexpected surge in U.S. crude inventories, sparked renewed fears of oversupply. The oil pullback followed a brief rally earlier in the week, triggered by the U.S.-China agreement to reduce trade tariffs. Still, geopolitical risk remains ever-present, and skepticism lingers as Trump’s rhetoric on Iran remains confrontational despite behind-the-scenes diplomatic progress.
Commodities broadly mirrored the uncertainty. Gold prices, having suffered a steep 2% drop, hovered near monthly lows under $3,200 as investors awaited key inflation data. The upcoming U.S. PPI and Retail Sales figures could shift market sentiment, especially with Fed Chair Jerome Powell’s speech looming on the horizon. The Federal Reserve’s rate trajectory hangs in the balance.
Meanwhile, Japan’s central bank signaled its readiness to tighten policy if inflationary pressures persist. Deputy Governor Shinichi Uchida acknowledged temporary stagnation in inflation expectations but cited rising wages and logistics costs as reasons to expect sustained upward price movement.
As traders juggle these crosscurrents—from fiscal policy and commodity shifts to crypto rebounds and geopolitical negotiations—the common thread is volatility. Staying informed and agile remains essential in this complex financial terrain.
Ethereum surge 2025, US-Iran nuclear deal, oil price drop, Bitcoin vs Ethereum, US debt concerns, Treasury yield rise, Federal Reserve policy, gold price outlook, Japan inflation policy, crypto market recovery
