💰 Global risk appetite has declined, favoring safe-haven assets.
💹 $Direxion Daily Gold Miners Index Bull 2X Shares(NUGT)$/$Wheaton Precious Metals(WPM)$/$Sibanye(SBSW)$: equip your portfolio with solid metal power.
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| The Razor's Edge
Investors need to closely monitor in the short term:
Whether the two superpowers, the U.S. and China, can reach a preliminary agreement on tariffs;
The response of the EU and other major economies to the U.S.;
And, what's new on Trump’s tweets.
On Thursday, U.S. stocks plummeted across the board, with $NASDAQ(.IXIC)$ falling more than 7% at one point, ultimately closing down 4.3%, while $S&P 500(.SPX)$ dropped 3.5%.
In the previous trading session, U.S. stocks surged significantly, with the NASDAQ up 12.16%, marking the second-largest single-day gain in the index's history.
Megacaps - Blood on the Street
Big big techs were not spared, with the entire sector experiencing declines. $Microsoft(MSFT)$, due to its diversified business model, recorded the smallest drop among the Magnificent 7.
$Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ rose by 23%, as the semiconductor sector dropped sharply, dragging the tech sector down comprehensively.
$Direxion Daily Financial Bear 3x Shares(FAZ)$ increased by 9%, as large financial stocks faced selling pressure due to renewed pessimism regarding the IPO outlook in the U.S. and concerns over an economic recession.
MAGA - Fed Check
Upholding its independence, the Fed remains determined to operate separately from Mr. President. As the market increases bets on a Fed rate cut, multiple Fed officials have emphasized that controlling inflation is the primary goal, warning about potential persistent price pressures from tariffs, and suggesting no urgency for rate cuts in the short term.
Top Movers - Whole Lotta Nuggets
Spot gold surged over $50 during the day, currently reported at $3,225.90 per ounce, continuing to set new historical highs with a 1.58% increase. On Thursday, $Harmony Gold Mining(HMY)$ rose by 10.6%, $Gold Fields(GFI)$ by 8.6%, and $DRDGold(DRD)$ by 7.6%.
Meanwhile, Canadian gold miners have also attracted attention, with $Skeena Resources Ltd(SKE)$ up 9.6%, $Fortuna Silver Mines(FSM)$ up 8.4%, and momentum stock $Newmont Mining(NEM)$ leading with a 4.5% increase.
Chinese assets have also become a must-have for risk aversion, with $HSTECH(HSTECH)$ rising 1.8% today, and the semiconductor sector showing strong performance, creating a stark contrast with U.S. stocks.
| U.S. Debt's $36T Problem
On April 10, the yield on the 10-year U.S. Treasury $US10Y(US10Y.BOND)$ rose to 4.29%, while the 30-year yield approached 5.00%, both reaching new highs in recent years.
The movements of major U.S. debt-holding countries come as the total U.S. national debt has surged to $36 trillion, with unprecedented debt pressure raising market concerns about the sustainability of U.S. finances and diminishing sovereign confidence in U.S. debt.
The storm triggered by Trump's tariff policies has not only exposed the vulnerability of the U.S. economy and global trade but has also sounded the alarm for potential crises in the U.S. debt market.
| Stiff Upper Lip
Market sentiment is currently cautious, necessitating forward-looking judgments. Overall, the market is at an important juncture of repricing.
Amidst volatility, the resilience of asset allocation and the foresight of strategies are being tested.
NUGT - 2X exposure
$Direxion Daily Gold Miners Index Bull 2X Shares(NUGT)$ , as its name suggests, is a leveraged ETF that aims to double the exposure to gold.
Even after the recent easing of U.S. inflation data, concerns about the impact of tariffs on the global economy continue to drive investors to seek safety in precious metals, pushing gold prices to new historical highs.
The 21% increase in gold prices this year has also been fueled by expectations of more accommodative policies from the Fed and central bank buying interest.
WPM - YTD +39%
$Wheaton Precious Metals(WPM)$ (formerly Silver Wheaton Corp.) is a global precious metals company established in 2004 and headquartered in Vancouver, Canada.
The company has entered into 20 long-term purchase agreements and one early long-term agreement related to silver and/or gold associated with 24 mining assets.
WPM has surged nearly 10% this week, with pre-market trading pushing it towards new highs.
SBSW - Pre-market Up 6+%
$Sibanye(SBSW)$ (formerly Sibanye Gold Ltd) is a multinational mining and metals processing group with a diverse mining and processing business, projects, and portfolio across five continents.
Sibanye Stillwater is one of the world's largest primary producers of platinum, palladium, and rhodium, as well as a top gold producer.
The group is one of the world's most important recyclers of platinum group metals (PGMs) and has interests in leading tailings reprocessing operations.
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