Markets Soar as US–Saudi Trade Deal Ignites Risk Rally; Crypto Outperforms

The landmark deal, which includes a rollback of key tariffs, triggered a fresh wave of risk-on sentiment, revitalizing equities and pushing crypto markets toward new highs.Wall Street Recovers from CorrectionThe S&P 500, which had been down as much as 17% at its April lows, has now fully erased those losses and sits flat on the year. The turnaround underscores investors’ renewed appetite for risk as trade tensions ease. With the “Art of the Deal” playbook seemingly back in motion, investor confidence is on the rise.Cooling CPI Fuels Rate Cut Optimism — CautiouslyOn the macroeconomic front, US Consumer Price Index (CPI) data surprised to the downside, offering some relief on inflation concerns. While this has led to renewed optimism for interest rate cuts, the Federal Reserve remains measured. At its latest meeting, the Fed reiterated a data-dependent approach, citing uncertainty around how tariff changes could ripple through inflation and employment figures.Markets had previously priced in four rate cuts for 2025, but that has now been pared down to two, with the first likely to come no earlier than September—a more realistic timeline in QCP’s view compared to earlier bets on a July move.Crypto Leads the ChargeAmong asset classes, crypto has emerged as the strongest performer. Bitcoin (BTC) is nearing its all-time highs, while Ethereum (ETH) is closing the gap. .dark-mode .read-more {background-color: #343a40 !important;} READ MORE: Anthony Scaramucci Shares Bold Bitcoin Prediction and ETF Outlook The sector is also drawing attention ahead of a major milestone: Coinbase’s upcoming inclusion into the S&P 500 on May 19. QCP notes that such index inclusions often serve as short-term catalysts, as passive funds realign their portfolios to reflect new benchmark constituents.Outlook: More Room to RunWith macro conditions improving and structural drivers in play, QCP believes digital assets have room to rally further. As index flows build and broader risk sentiment strengthens, both traditional and digital markets could be set for a dynamic summer.The post Markets Soar as US–Saudi Trade Deal Ignites Risk Rally; Crypto Outperforms appeared first on Coindoo.