5 Things Traders Need to Know Right Now – Gold Is Back!
Stocks have staged a huge rally off the April lows just in time for the FOMC meeting tomorrow.
So here are the 5 things we're watching during this turbulent time:
1. Gold Is Surging Into the FOMC
Gold fell 9% after hitting record highs on April 2.
But it's been surging again heading into the May 7 FOMC Rate Decision.
While most observers agree the Fed will not cut rates, uncertainty is at a high because of all the moving pieces:
- President Trump has been urging the Fed to cut rates, raising concerns over the independence of the institution
- The possibility of Trump going after FOMC Chair Powell after the decision is announced
- Economic data has been all over the place
- The tariff war raises the risk of high prices and slower economic growth
Today, we sat down with Adam Mesh to discuss the risks of trying to game the Fed. Adam also gave an update on Uber (UBER), which he named his #1 stock of the year last week:
2. Palantir Drops 12%, Which Is Tiny
Palantir (PLTR) dropped another strong earnings report after the close yesterday, but the stock sold off on concerns about international demand.
Over the past 8 quarters, Palantir has moved an average of 18.8% the day after earnings:
- 4Q 2024: +24.0%
- 3Q 2024: +23.5%
- 2Q 2024: +10.4%
- 1Q 2024: -15.1%
- 4Q 2023: +30.8%
- 3Q 2023: +20.4%
- 2Q 2023 -5.3%
- 1Q 2023: +23.4%
So 12% is pretty small compared to Palantir's post post-earnings moves.
Fun fact: Palantir is now the fourth-best performing stock in the S&P 500 this year.
CVS Health (CVS) is in the #1 spot if you can believe it:
3. Greed Just Made a Big Comeback
CNN's Fear & Greed Index has ticked up to 58/100 to land in the “Greed” category. A month ago, it was at 3.
This parallels the huge drop in the VIX, which has gone from 60 on April 7 to 24 today:
So yes, the mood has lightened – no surprise given the big rebound in the indices.
4. Ferrari Proves Rich People Are Fine
Would a global trade war stop you from buying a $500,000 Ferrari (RACE)?
If you're a typical customer, the answer is NO.
In early April, European automakers were sent sharply lower on the prospect of tariffs on cars imported to the US.
What a difference a month makes…
Ferrari delivered an across-the-board earnings beat, and now the stock is 22% above its post-Liberation Day lows:
Benedetto Vigna, CEO of Ferrari, said “In the first quarter of 2025, with very few incremental shipments year on year, all key metrics recorded double-digit growth, underscoring a strong profitability driven by our product mix and continued demand for personalizations.”
5. Biotech Gets Banged Up
The biotech sector was staging an impressive comeback after years of underperformance.
Until today.
Dr. Vinay Prasad was named the new head of the FDA's Center for Biologics Evaluation & Research, which oversees the regulation of vaccines, gene therapies, and the blood supply.
Dr. Prasad has been a vocal critic of the FDA in the past, and the market is reading his appointment as an obstacle for the drug industry.
The SPDR S&P Biotech ETF (XBI) fell 6.7% today – wiping out 9 days of gains.
And with all the confusing heading into the FOMC tomorrow, we'll leave you with two words:
GOOD LUCK.
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