Trading sentiment is mixed early Friday as markets try to understand the next move of the United States Federal Reserve (Fed) amid weak United States employment signals, uneven inflation, improving growth expectations and a cautious Federal Open Market Committee (FOMC) statement. Uncertainty increases due to the absence of major data or events and repeated comments from U.S. President Donald Trump, who attempted to stir geopolitical and trade concerns while sounding more diplomatic as he works to regain approval ratings weakened by the shutdown.
Market sentiment appeared cautious as sector performance diverged. Investors shifted toward financials and healthcare, both seen as safer areas in current volatility, while technology lagged, raising concerns about a potential economic slowdown.
The U.S. Dollar (USD) ended the session weaker as United States Treasury yields fell across the curve due to a normalization in labor market data. Higher jobless claims encouraged bond buying, putting further pressure on the USD.
U.S. Initial Jobless Claims for the week ending December 06 rose to a three-month high of 236K, above the 220K expected and the revised 192K prior figure. The Trade Balance for September improved to -$52.8 billion, better than the -$63.3 billion estimate and the prior -$59.3 billion. The Atlanta Federal Reserve (Atlanta Fed) raised its Q3 2025 Gross Domestic Product (GDP) estimate to 3.6% from 3.5%, and Federal Reserve officials sharply increased their 2026 GDP growth projections to 2.3%.
Trump news today included administration sanctions on Nicolás Maduro’s nephews and six ships carrying Venezuelan oil.
Trump said Maduro and his associates must stop drug trafficking, corruption and dictatorship and leave the country.
On Ukraine, the administration continues speaking with both sides and will send representatives if progress toward a productive peace agreement becomes possible.
On the Federal Reserve (Fed), Trump said the Fed should do more.
On Nvidia H200 chips, shipments to approved customers in China will continue, while Nvidia shares fell by $3.80 or 2.06% to $179.99. On TruthSocial, Trump claimed prices for energy, oil and gasoline are falling toward five-year lows and said the stock market hit an all-time high, adding that tariffs are generating hundreds of billions of dollars.
He said he maintains good relationships with the leaders of China and Japan.
Regarding Venezuela, Trump said conflict could soon begin on land and suggested the US is provoking confrontation, possibly aiming for regime change, though he may be applying pressure to push Maduro to leave.
Yesterday, the US seized an oil tanker carrying Venezuelan crude. On Ukraine, Trump said both sides are very close to a deal, though his comments remain difficult to interpret literally.
Trump said there will likely be only one global winner in Artificial Intelligence (AI), either China or the USA, and he will sign an executive order related to AI. Sacks said the order will provide tools to counter restrictive state rules and create a single national AI standard.
U.S. Treasury Secretary Scott Bessent said criminal groups linked to Maduro are sending drugs to the US that are harming Americans.
Japan’s October industrial production rose 1.5% year-over-year versus 1.6% preliminary and 2.0% prior, and capacity utilization was revised up to 3.3% from 2.5%. A magnitude 6.7 earthquake triggered a one-meter tsunami and a tsunami advisory for the northern coast, though no damage is expected. Japanese stocks were strong, with the Nikkei 225 rising 1.5% and approaching its December high. Despite six weeks of sideways movement after October’s sharp rise, a pattern of higher lows continues to show steady accumulation. The Nikkei 225 is up 27% this year, the Japanese Yen (JPY) is roughly flat but volatile, and rising borrowing costs strengthen expectations that the Bank of Japan (BOJ) may raise interest rates on December 19.
The Australian Dollar saw two-way volatility after a domestic jobs report that looked stronger in the headline than in underlying details.
In Canada, Prime Minister Mark Carney is close to securing a parliamentary majority, needing just one more vote. He won the election but fell short of the required 172 seats, holding only 169. After two Members of Parliament (MPs) from the opposing party crossed the floor to join the Liberals, the count has risen to 171. This development is viewed as positive for the Canadian Dollar (CAD).
itcoin remained quiet despite broader volatility, dipping by $135 or 0.15% to $91,921 as it consolidates recent gains.
The U.S. Dollar Index (DXY) trades at an eight-week low, slowing its two-day decline but showing little momentum for recovery. Gold is stabilizing at its highest level since October 21 after three days of gains. EURUSD holds near a ten-week high, GBPUSD edges higher near its October 17 peak, USDJPY pauses its two-day slide, AUDUSD and NZDUSD remain slightly pressured after pulling back from multi-day highs, and USDCAD posts mild gains at a three-month low after stalling a three-day decline while crude oil rebounds from a seven-week low. Bitcoin (BTC) and Ethereum (ETH) remain subdued after a slightly softer day but are still positioned for weekly gains. Asia-Pacific equities are moving higher even as Wall Street ended mixed.
EURUSD and GBPUSD remain steady near their highest levels since October, supported by a softer USD, hawkish remarks from European Central Bank (ECB) officials and consolidation ahead of the UK data release. Meanwhile, USDJPY pauses its two-day losing streak and is now aiming for its first weekly gain in three weeks, as Japan’s earthquake, tsunami and mixed economic data challenge the Bank of Japan (BoJ) hawks.
The AUDUSD pulls back from a three-month high, while the NZDUSD follows the same direction as the Aussie. The USDCAD rebounds from a three-month low, ending its three-day losing streak. A corrective rise in crude oil prices, Canada’s key export, along with supportive political developments in Canada, has not drawn significant market attention.
Crude Oil consolidates recent losses near a multi-week low and remains on track for its first weekly decline in three weeks, as weak market sentiment, Organization of the Petroleum Exporting Countries plus (OPEC+) demand concerns and rising supply continue to pressure the black gold.
Cryptocurrencies trade mixed but inch higher, supported by a softer United States Dollar (USD), which helps digital assets recover previous losses despite broadly uneven sentiment and a light macro environment.
Major United States equity indices closed mixed, showing strength in blue-chip stocks and renewed concern in high-growth technology. The Dow Jones Industrial Average (DJIA) and the Standard and Poor’s 500 Index (S&P 500) finished at record highs, while the Nasdaq Composite declined as investors shifted out of mega-cap technology due to growing fears of an Artificial Intelligence (AI) bubble. The DJIA gained 646.26 points or 1.34% to 48,704.01, the S&P 500 rose 14.32 points or 0.21% to 6,901.00, and the Nasdaq Composite fell 60.30 points or 0.25% to 23,593.86.
Technology weakness deepened after Oracle shares dropped 10.83%. Although earnings per share (EPS) beat expectations, revenue missed estimates and capital expenditures rose sharply beyond forecasts, reinforcing investor concerns that AI-related spending is outpacing revenue growth. The decline extended to semiconductors, with Nvidia down 1.53%, Micron down 1.99%, Intel down 3.11% and AMD ending flat after recovering intraday losses, highlighting persistent doubts about the durability of AI-driven earnings momentum.
German inflation data, UK Gross Domestic Product (GDP) and mid-tier Canada data will come before speeches from U.S. Federal Reserve (Fed) policymakers, giving momentum traders direction on Friday. With markets anxious about the Federal Open Market Committee (FOMC) rate decision outlook for 2026, traditional safe-haven assets such as Gold, the Swiss Franc (CHF) and the Japanese Yen (JPY) may benefit. Cryptocurrencies could stay under pressure, while equities are likely to trade mixed with further downside possible in technology shares.
May the trading luck be with you!
