The Peace rally can't be stopped – North American Session Market Wrap for May 6

Log in to today's North American session Market wrap for May 6

Today’s sharp market moves confirmed again that when President Trump changes his geopolitical stance, Wall Street doesn't react with half conviction.

The ongoing peace rally has been impressive: Even with many ups and downs and conflicting stories since the ceasefire began about a month ago, equity bulls have stayed steady.

The trading session opened with strong activity. WTI Crude Oil dropped 8% after Axios reported a new, sustainable path toward a US-Iran peace deal. Throughout the day, no official statements challenged this positive outlook, so risk-on sentiment continued to build.

As the market closed, risk assets did not stall their rally a single minute.

The Dow Jones reached the 50,000 mark just before the close, for the first time since February 12, and the Nasdaq rose by nearly 2%. Gains also appeared in alternative assets, with precious metals rising and altcoins seeing renewed activity, while Bitcoin and Ethereum stayed mostly flat.

As highlighted in our mid-week update, with even Israel reportedly surprised by the rapid development of this deal, market participants are taking this diplomatic advancement very seriously.

While President Trump announced a one-week deadline for finalizing the agreement on Fox News, most institutional traders expect that no deal will be signed before Trump meets with Chinese President Xi Jinping at their summit on May 14 and 15.

Read More:

• Copper attempts to break its mid-April $6.10 spike – On the way to new ATH? XCU/USD Outlook
• Stocks explode higher; The peace deal is seemingly near – Dow Jones, Nasdaq and S&P 500 Intraday Outlook
• Conflicting peace narratives ahead of April labor data – North American Mid-Week Market Update
• Bitcoin (BTC/USD) Price Outlook: Why a close above $82,133 Is needed to resume the bull run

Today's Crude Oil drop was a celebration for all types of assets around Markets, a trend that has persisted throughout the entire conflict.

Expect to see this Oil-Market inverted correlation especially more in coming days and weeks.

FX traders are finally seeing long awaited momentum and movement in Markets that remained more than muted since early April.

The US Dollar naturally led the way down along with the Loonie as Crude Oil dragged the two North American currencies lower, profiting particularly well to APAC monies, which are most affected by the Hormuz situation.

The end-week trading is slowly coming closer and participants are getting ready for some high-tier data releases.

There will be some movement for the AUD (Trade Balance) and JPY (BoJ Minutes) during the evening session, and this will be followed with a high importance Retail Sales report in Europe.

For the North American session, make sure to track what the Fed Speakers have to say about the ongoing conflict and its effect on inflation.

As always, make sure to follow talks around US-Iran negotiations.

Safe Trades!

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