A federal judge blocked Elon Musk and the Department of Government Efficiency from further actions to shut down the U.S. Agency for International Development (USAID), ruling that their efforts likely violated the Constitution by usurping Congress's authority and bypassing proper appointment procedures. The judge ordered the restoration of computer system access for USAID employees and contractors, who had been locked out after the administration froze foreign aid and placed many on leave. The ruling stemmed from a lawsuit by USAID employees alleging that Musk effectively took control of the agency without proper authority. Although the judge did not stop the mass terminations of contracts and personnel, he noted these actions were likely unconstitutional but executed by other officials. Trump criticised the ruling, calling the judge "rogue," and vowed to appeal. Meanwhile, Secretary of State Marco Rubio announced significant cuts to USAID’s programmes and staff, indicating the administration’s intent to continue downsizing the agency.

EQUITY

Stocks once again move lower after rebounding slightly for the past 2 sessions, with tech selloffs still ongoing. Tesla fell more than 5% with waning confidence in Musk, while Google's parent company, Alphabet, was down 2% after seeking to restart its acquisition of cybersecurity firm Wiz for $32 billion with an overpriced breakup fee. Super Micro Computer fell the most from these selloffs, while Discover Financial Services rebound from renewed M&A confidence.

GOLD

Gold prices continue printing record highs, breezing past $3,000 without much resistance thanks to continued safe-haven demand. The ongoing geopolitical instability, including Israeli airstrikes in Gaza and stalled Russia-Ukraine ceasefire talks, has helped boost gold's appeal as a hedge against risk assets which are seeing distress. Federal Reserve rate decisions are not expected to affect gold as much, but any clues to future meetings could guide price.

OIL

Oil prices declined after Russia agreed to a U.S.-proposed temporary ceasefire to rule out energy infrastructure as a target, likely allowing more Russian oil into global markets and easing supply disruptions. Middle East tensions offer little price support after Israel breaks the ceasefire to strike Gaza, and U.S. actions against Yemen’s Houthis have somewhat capped losses. Analysts note that inventory builds and spare production capacity could skew risks to the downside despite geopolitical risk.

CURRENCY

The U.S. dollar ticked slightly higher ahead of the Federal Reserve’s policy decision, rebounding from a five-month low as markets awaited updated rate projections. The yen weakened after the Bank of Japan maintained its 0.5% rate, with traders parsing Governor Ueda’s remarks for clues on future hikes, while the euro held a five-month peak over Germany’s fiscal expansion plans. China’s yuan eased as the PBOC stabilised its value against a weaker dollar, though trade tensions and geopolitical risks.