Central-Bank Caution Meets Earnings Euphoria: Markets Ride Mixed Data and Commodity Gains

Markets saw mixed economic data and modest currency moves throughout the week, as investors reacted to inflation figures, employment data, and central bank decisions across key regions. Highlights included Switzerland’s flat inflation print, continued growth in the U.S. services sector, steady labor conditions in New Zealand, and a cautious tone from the Federal Reserve.

Major Economic Indicators and Events in Review

Monday, May 5

09:30 am – Switzerland: CPI m/m (CHF)

In April 2025, Switzerland’s consumer price index held steady at 107.5 (base December 2020 = 100), with annual inflation at 0.0%, according to the Federal Statistical Office. Price increases in clothing, air transport, and personal care were offset by declines in hotel stays, mountain railways, and domestic holidays.

The USDCHF exchange rate fell by 0.5%.

17:00 – USA: ISM Services PMI (USD)

U.S. services sector activity grew for the 10th straight month in April, with the Services PMI rising to 51.6%, signaling moderate expansion. While new orders and supplier deliveries improved, business activity slowed slightly, and employment remained in contraction. Prices rose at a faster pace, and inventories continued to expand. Despite concerns about tariffs and federal budget cuts, overall momentum in the services sector remains positive.

The EURUSD ticked up 0.14%.

Wednesday, May 7

01:45 am – New Zealand: Employment Change q/q (NZD)

In the March 2025 quarter, New Zealand’s unemployment rate held steady at 5.1%, while the underutilization rate edged up to 12.3%. The employment rate dipped slightly to 67.2%. Over the year, all salary and wage rates rose 2.9%, with average weekly earnings for full-time workers increasing to $1,666 and average hourly earnings reaching $42.79.

The NZDUSD exchange rate declined by 1.12%.

21:00 – USA: Federal Funds Rate (USD)

The FOMC kept the federal funds rate steady at 4.5% and maintained its balance sheet plans, offering no clear direction on future moves. While the guidance echoed Chair Powell’s earlier remarks, it reflected growing uncertainty, with policymakers emphasizing that upcoming decisions will depend on how inflation and unemployment evolve.

The EURUSD exchange rate decreased by 0.63%.

Thursday, May 8

14:00 – UK: Official Bank Rate (GBP)

The Bank of England cut interest rates from 4.5% to 4.25%, citing weaker economic prospects and lower inflation partly due to higher tariffs linked to Donald Trump’s trade war. The decision came ahead of a UK-U.S. trade deal announcement, with the MPC divided on the move. Further rate cuts are expected, but the pace and extent remain uncertain.

The GBPUSD currency pair declined by 0.34%.

15:30 – USA: Unemployment Claims (USD)

For the week ending May 3, U.S. initial jobless claims fell by 13,000 to 228,000, while the four-week average rose slightly to 227,000. The insured unemployment rate dipped to 1.2%, with 1.88 million continuing claims—a decrease of 29,000 from the prior week.

The EURUSD exchange rate fell by 0.64%.

Friday, May 9

17:30 – Canada: Employment Change (CAD)

Canada added 7,400 jobs in April, but the gain was driven by temporary election hiring. Unemployment rose to 6.9%, goods and retail jobs fell, and wage growth slowed to 3.4%.

The USDCAD increased by 0.1%.

Commodities

1. Crude Oil
   1. Crude oil prices increased by 4.52% over the past week
2. Brent Oil
   1. Brent was up 4.01% compared to the previous week
3. Gold
   1. The precious metal Gold (XAUUSD) concluded the week on Friday with a 2.65% weekly increase
4. Silver
   1. XAGUSD increased by 2.25% from last week

Stock Market

1. S&P 500 decreased by 0.41%
2. DJIA was down by 0.08%
3. NASDAQ 100 fell 0.20%

Top Gainers

1. Next Technology Holding Inc. (NXTT) 707.11%
2. Regencell Bioscience Holdings Limited (RGC) 497.57%
3. Hyperscale Data, Inc. (GPUS) 449.64%

Top Losers

1. NuCana plc (NCNA) -90.87%
2. Vor Biopharma Inc. (VOR) -77.12%
3. Accelerate Diagnostics, Inc. (AXDX) -72.08%

Company Earnings (May 5 – 9)

Monday, May 5: F (Ford Motor Company)

Wednesday, May 7: DIS (The Walt Disney Company)

Thursday, May 8: LYFT (Lyft Inc.)

Ford reported Q1 2025 revenue of $40.7 billion and net income of $471 million, with adjusted EBIT at $1.0 billion. While cost and quality improvements supported performance, the company expects a $1.5 billion tariff-related EBIT hit for the year and has suspended full-year guidance due to policy uncertainty.

F shares increased by 1.46% compared to the previous week.

Disney shares jumped 10% after it beat earnings expectations and reported a surprise gain of 1.4 million Disney+ subscribers. Revenue rose across all business segments, with overall revenue up 7% to $23.62 billion and adjusted EPS at $1.45. The company also raised its full-year earnings outlook and announced a new theme park in Abu Dhabi.

DIS shares increased by 14.54% from the previous week’s closing price.

Lyft shares rose after the company increased its stock buyback plan to $750 million despite missing earnings and revenue estimates in Q1. The company posted EPS of $0.01 and $1.45 billion in revenue, with rides up 16% and gross bookings up 13%. Lyft also reported strong free cash flow and expects continued growth in Q2.

LYFT shares jumped 31.62% compared to the previous week.

Conclusion

Last week’s economic and market activity reflected a mix of steady fundamentals, growing uncertainty, and strong corporate earnings surprises. Central banks took cautious or accommodative stances amid tariff pressures and slowing inflation, while key labor and inflation data influenced currency moves. Notably, strong earnings reports from Disney and Lyft sparked sharp stock gains, boosting investor sentiment despite broader market softness. Commodities advanced, led by crude and precious metals, signaling ongoing macro uncertainty and safe-haven demand.