Purple is yet to be seen. Democratic US President Joe Biden and Republican leader Kevin McCarthy are reportedly close to reaching a two-year deal to increase the government's debt ceiling while placing limits on spending. This deal would involve higher funding for the military and veterans while keeping non-defence spending at the status quo. There is also a possibility that the plan for $80 billion in additional funding for the Internal Revenue Service (IRS) may be scaled back. The agreement still needs to be approved by the House and Senate, but it faces challenges as it is met with opposition from conservative Republicans and liberal Democrats while the bill eventually need a bipartisan to progress.

EQUITY

Wall Street saw significant gains as Nvidia's impressive forecast and increasing supply to meet demand for its AI chips drove the chipmaker's stock up by 24% trading at P/E ratio of 158. This boost in Nvidia's stock sparked a rally in AI-related companies, with Microsoft and Alphabet also experiencing gains. However, concerns over the U.S. debt ceiling negotiations and a possible credit downgrade kept investors somewhat uncertain.

GOLD

Gold prices fell to two-month low and were poised for weekly losses on strong dollar, causing investors to shift towards the greenback. The decline in gold came after reaching record highs in May, as reduced worries about an immediate banking crisis diminished its appeal as a safe haven. Ongoing hawkish signals from the Federal Reserve and signs of strength in the labor market bolstered the dollar and weakened gold further. 

OIL

Oil prices stabilized after yesterday's crash as the market awaited clarity on OPEC and its allies' future oil policy. With Russian officials downplaying the possibility of further production cuts and the Saudi Arabian energy minister admonishing short sellers, it was difficult to predict the outcome of the meeting next week due to conflicting messages from industry players.  

CURRENCY

The US dollar cool after fourth consecutive rally, reaching a two-month high supported by strong US economic data and concerns about a potential US default. The labour market showed resilience, with weekly jobless claims slightly higher but still below estimates while revised GDP growth for the first quarter is up 1.3%. The probability of a rate hike in June increased stayed low at 37.8%, while expectation of downgrading by credit rating agencies further boosted the dollar.