Wall Street rallies on stronger than expected earnings, DJIA flips better bid (up 270 points on the day)

The Dow Jones Industrial Average (DJIA), put up 269.25 points, or 1%, to close at 26,412.30.
S&P 500 index climbed by 19.09 points, or 0.7%, to end at 2,907.41.
The Nasdaq Composite Index added 36.80 points, or 0.5%, to finish up at 7,984.16.

Ross J Burland FXStreet

Wall Street was sharply higher on Friday with investors cheering a strong set of bank earnings. JPMorgan's quarterly results for the Dow component were better than expected and Wells Fargo & Co. followed, posted strong revenue and in-line earnings. For the DJIA, JPMorgan set the scene followed by Walt Disney Company which unveiled plans for its new streaming service, sending the price of stocks higher. The risk on sentiment sent US rates lower across the curve with the 10y yield climbed to its highest level in nearly a month (+6.3 to 2.56%).

US data:

Import prices rose at a higher than expected pace in March (0.6% m/m vs 0.4% consensus) largely on the back of rising imported energy prices. The monthly increase took the y/y rate to flat from -1.6% in February. Then, UMich's preliminary April consumer sentiment was a touch weaker than expected at 96.9 vs 98.2 consensus, down from 98.4 in March.

DJIA levels

From a technical perspective, there was a sharp turn around in price action. There is room to the top side in pursuit of the October highs but bulls will be fearful of overstretched momentum indicators in time. On the flipside, the first key bearish target will be the 20-D SMA and 26000 ahead of the 25700s and then the 200-DMA guarding a break all the way down to 24800 gap area ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24200.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD looks weaker, focus is back to 0.7100

AUD/USD reverses Tuesday’s gains and retreats markedly toward four-day troughs in the low 0.7100s ahead of the opening bell in Asia. The firmer tone in the Greenback weighs on the risk complex amid unabated tensions on the US-Iran front, prompting the Aussie to shed part of recent gains and refocus on the downside. Moving forward, Australian trade balance results should entertain investors early on Thursday.

Japanese Yen bounces up from lows after Japan PM Takaichi’s intervention warnings

The Japanese Yen bounced up from five-week lows against the US Dollar, turning positive on the daily chart, as Japan’s Prime Minister Sanae Takaichi warned that Tokyo is ready to take action against Yen weakness. The USD/JPY pair has pulled back from the 160.00 level, considered a line in the sand for Japanese authorities, to hit session lows at 159.55.

Gold slumps to near $4,450 as strong US jobs data reinforce higher-rate bets

Gold price falls to around $4,450 during the early Asian session on Thursday. The precious metal attracts some sellers amid rising expectations that the US Federal Reserve will raise interest rates this year.

Grayscale launches Hyperliquid staking ETF, undercutting rival fees

Grayscale announced the launch of its Hyperliquid Staking ETF on Wednesday, now trading on Nasdaq. The fund offers investors direct exposure to HYPE and incorporates staking rewards, which the company claims have historically ranged from 2.2% to 2.3% annually. "HYPG represents an opportunity to provide efficient exposure to HYPE in an ETP wrapper," Grayscale noted on its website.

The upside-down math of debt

In 2010, Professors Carmen Reinhart and Kenneth Rogoff published a paper, Growth in a Time of Debt, which instantly went viral. The main thesis of the paper was that once a government's debt-to-GDP ratio crosses above 90%, a financial crisis and default are around the corner.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.