An Englishman’s Take on Recent Market News

Oil Prices Take a Tumble

Today, oil prices found themselves in a bit of a dip, falling by over 1%. This slide came after President Trump indicated he might refrain from striking Iran. In a statement from the Oval Office, Trump assured that the violence in Iran had ceased and there were no plans for further executions. Consequently, Brent crude settled down by 93 cents, landing at $64.50 per barrel. Simultaneously, the price of gold took a hit on the news as well.

Financials Under Pressure

Over in the stock market realm, traders have been rather bearish on Financials, opting to sell for the past three days. This wave of selling can be attributed to Trump’s proposal to cap credit-card interest rates at 10%, a notion he’s reportedly discussing with Senator Elizabeth Warren. Despite relatively positive earnings from prominent banks earlier this week, the Financials continued their downward trajectory. Interestingly, this creates a potential buying opportunity. We expect stellar earnings reports from both Goldman and Morgan Stanley tomorrow. It’s highly probable the banks will quash the credit-card cap idea.

Stellar GDP Performance

Speaking of remarkable performances, last year’s real GDP figures were nothing short of “gangbusters”. The second quarter showed a growth of 3.8%, followed by 4.3% in the third. The Atlanta Fed’s GDPNow estimates have once again been revised. The anticipated growth rate for Q4 of 2025 has increased from 5.1% to 5.3%, thanks to a strong retail sales report from November.

What Lies Ahead?

As we await tomorrow’s reports from the banking giants, the mood remains optimistic. Transitioning into the future, we forecast that these banks will triumph over any attempts to impose strict caps on interest rates. This optimism aligns with the stellar GDP forecasts, painting a rather rosy picture for the economy.

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We anticipate greater clarity and perhaps a dash of drama in the days to come. However, the market’s agile nature keeps us ever vigilant. Cheers!