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| This week's gainers and losers |
| Top Flex +55.04%: the stock surged after annual results and, more importantly, the announcement of a plan to spin off its Cloud and Power Infrastructure business, unlocking the value tied to data centers. Datadog +42.43%: the market welcomed a Q1 well above expectations and a major increase in 2026 guidance, driven by AI-related demand and cloud observability. Fortinet +32.19%: the gain followed a very strong Q1 and better-than-expected guidance, easing concerns that AI could disrupt cybersecurity software companies. Nebius +14.6%: the rally was fueled by continued AI enthusiasm, reinforced by the acquisition of Eigen and ahead of upcoming quarterly results. Corning +18.12%: the main catalyst this week was its agreement with Nvidia in optical fiber for AI infrastructure, alongside a major expansion of U.S. industrial capacity. Howmet +12.96%: the stock, the top performer in the ranking without direct AI exposure, benefited from a Q1 well above expectations and higher 2026 guidance, supported by strong aerospace and defense demand. Flop Zoetis -27.44%: the selloff followed a disappointing Q1 and lower full-year guidance, with notable weakness in the U.S. pet market. Coupang -17.53%: the decline was driven by a return to a net loss in Q1 and a sharp drop in adjusted EBITDA, despite still-positive revenue growth. |
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| Commodities |
| Energy: The situation around the Strait of Hormuz remains unstable, but markets are choosing to focus on the more optimistic scenario. After all, the United States and Iran are negotiating directly or indirectly. This has allowed oil prices to pull back, with Brent trading lower around USD 100 and WTI also easing to USD 95. That decline remains fragile given the ongoing tensions in the Middle East. New military clashes were reported Friday near the Strait of Hormuz. Donald Trump downplayed the incidents and said the ceasefire remains in effect. The outlook for oil prices remains highly binary: a peace agreement reopening the Strait of Hormuz would push prices lower, while any delay in negotiations would likely keep prices elevated. Metals: Gold continues to move higher and remain volatile, much like oil, following developments in the Middle East. A potential agreement would significantly reduce concerns over energy-driven inflation. With inflation under control, the US Federal Reserve would have more room to cut interest rates. Gold typically becomes more attractive when rates fall, as the metal does not generate direct yield for investors. However, gains in gold remain capped by ongoing uncertainty, as Iran is still refusing to reopen the Strait of Hormuz. Gold therefore rose to USD 4,730 per ounce. Silver followed the same trend, gaining 7% to USD 81. In London, copper posted its best weekly performance since January, with the three-month contract trading at USD 13,393 per ton. Global supply remains under heavy pressure, supporting the rally. First, mining company Freeport-McMoRan delayed the return to full capacity at its Grasberg mine in Indonesia, one of the world’s largest. Second, disruptions in the Strait of Hormuz are affecting sulfuric acid supplies, a key component in copper production. Agricultural products: Wheat, corn, and soybeans are taking a breather in Chicago, with prices moving lower this week. Wheat is trading around 614 cents on the July 2026 contract. Markets remain closely focused on weather conditions in the United States, where drought continues to impact U.S. wheat-producing regions. Cocoa prices, meanwhile, are accelerating higher, gaining around 20% this week. Concerns are growing over crop prospects in West Africa due to fertilizer shortages. |
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| Macroeconomics |
| Macro: Another positive surprise came from the US labor market. The U.S. economy added 115,000 jobs in April, well above the 65,000 expected by economists. The unemployment rate remained stable at 4.3%, as anticipated. This marks the first time in a year that the US economy has posted job growth for two consecutive months. The report confirms the trend seen in recent weeks: the US economy remains resilient, the labor market is still strong, and the Fed can focus on the other side of its mandate - inflation. Since the last Fed meeting, the debate is no longer about when rates will be cut. Markets are now questioning whether rates may need to move higher again. Against this backdrop, interest rates remain close to their highest levels of the year, with the U.S. 10-year Treasury yield around 4.4%. Crypto: Bitcoin is up 1.3% since Monday and is hovering near USD 80,000. Spot Bitcoin ETFs continue to see strong accumulation, posting a sixth consecutive week of net inflows, with USD 3.5 billion in fresh capital collected over that period. Total assets under management now stand at USD 107 billion, representing 6.67% of all bitcoins in circulation. For now, the leading cryptocurrency is following a similar pattern to April, trading with dynamics close to those of tech stocks. However, while bitcoin previously tended to amplify both upside and downside market moves, investors now appear more focused on AI-related opportunities than on crypto. As a result, bitcoin volatility is far less extreme than it once was. Among other cryptocurrencies, ether (ETH) is down 2% around USD 2,200, Solana (SOL) is up 5% to USD 88, and XRP (XRP) is flat at USD 1.38. |
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| Things to read this week | ||||||
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*The weekly movements of indexes and stocks displayed on the dashboard are related to the period ranging from the open on Monday to the sending time of this newsletter on Friday. The weekly movements of commodities, precious metals and currencies displayed on the dashboard are related to a 7-day rolling period from Friday to Friday, until the sending time of this newsletter. These assets continue to quote on weekends. |
