Stocks turn lower as tariff worries cast a shadow

Chris Beauchamp IG

When even good tech earnings can't support the market, it might be time to worry, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks cede ground as tariff worries weigh on sentiment

The morning’s positive atmosphere has given way to much more cautious trading. Last night’s tech results seemed to deliver the tonic investors had been looking for, but caught between more tech earnings and some harsh tariff rhetoric, stocks have given back their gains. Even with tonight’s earnings out of the way, there is still the hurdle of payrolls tomorrow to navigate.

Fed decision boosts dollar

The US dollar continues to surge, especially now that a September rate cut seems less likely. Prices are still rising, and even though tariffs are settling at lower levels than feared, they are now an established part of the landscape. A further bump in inflation seems inevitable, which further muddies the waters around a 2025 rate cut, though at least a hike remains off the cards for now

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Chris Beauchamp

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.