For years investors have seen the rules bent in favour of the powerful and the foreinformed, so Senator Josh Hawley is stepping in and reintroducing the “PELOSI Act", a measure that would bar members of Congress and their spouses from buying or holding individual stocks during their time in office. Instead, they would be limited to broad-based investments such as mutual funds, ETFs or U.S. Treasury bonds. Current lawmakers would have 180 days to divest any single stock holdings; failure to comply would mean forfeiting gains and paying a ten-percent fine for each trade. Controversially named after Nancy Pelosi in response to Republican complaints about her family’s high-profile trades, the proposal aims to restore public trust by eliminating even the appearance of insider dealing. It has drawn rare bipartisan interest, including open support from Donald Trump, and develops amid growing scrutiny of congressional ethics. If enacted, retail investors might feel more confident that elected officials are not using confidential information for personal gain, although the law’s true impact on markets will hinge on how rigorously it is enforced.

EQUITY

Stocks were muted ahead of key earnings reports from tech giants including Amazon, Apple, Meta Platforms, and Microsoft, along with first-quarter domestic growth and April's jobs report. Market sentiment has been cautiously optimistic following a relief rally based on hopes for trade negotiations with VIX at 25. Nvidia shares fell 2.1% following reports that China's Huawei is developing an AI chip that could replace some of Nvidia's higher-end products.

GOLD

Gold prices are in high-range consolidation below the record high of $3,500 reached the previous week, continuing to find support, with Beijing denying President Trump's claims of trade discussions, keeping investors guessing. Bargain-hunting kept prices high after recent price dips, with analysts noting limited downside risk due to under-positioning by Western investors, mainly private traders and macro funds who largely missed gold's recent rally.

OIL

Benchmark crude oil prices declined on Monday and continued falling Tuesday as OPEC+ prepares to expand production in June, adding to an already oversupplied market. Not only has the trade war created a demand pit, but with economists warning that recession is looming, it could further reduce consumption, and analysts like Barclays are cutting their 2025 price forecasts. US-Iran nuclear negotiations are also monitored, where progress could lead to sanctions relief and introduce more Iranian oil to global supplies.

CURRENCY

The dollar traded lower on Monday while Asian currencies firmed against the weakened dollar, with the Malaysian ringgit and Taiwan dollar among the better performers, though most regional currencies were still recuperating steep losses from recent weeks. Reports that Trump might scale back automotive tariffs provided some relief to markets, but conflicting signals about US-China trade negotiations continued to stress markets.