Analysis
Markets worldwide experienced a volatile week, with significant movements driven by macroeconomic factors and earnings reports. The accuracy of our models this week stood at 34.9%, reflecting the challenges of navigating unpredictable market conditions.
The week began with a shockwave as China’s DeepSeek $AI rout led to a broad sell-off in global tech stocks. This event underscored the interconnectedness of global markets, particularly in the technology sector, where our models identified a bullish signal amid the turmoil. The sudden drop in $AI prices was attributed to concerns over China’s economic policies and their impact on global supply chains. Despite the initial panic, our algorithms detected underlying patterns suggesting potential recovery in the tech sector.
Commodities saw mixed performance, with Comex gold and silver settling lower due to safe-haven demand. However, U.S. crude exports reached all-time highs, driven by $SPR releases, signaling strength in the energy sector. The sharp decline in precious metals prices was offset by strong demand amid geopolitical uncertainties, while energy markets benefited from increased production levels in the Gulf region.
In our preview section, we analyze the potential market movements post-shock, suggesting that markets may soon stabilize after initial volatility. Key sectors to watch include technology, precious metals, and energy, as they continue to grapple with fundamental shifts. The tech sector is expected to see stabilisation following the recent sell-off, while energy markets are likely to remain bullish due to supply-side factors.
Key takeaways:
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