The S&P 500 recently fell due to uncertainty about a tariff ruling, not because of the Producer Price Index (PPI). However, there was a bounce back when the ruling announcement was delayed. The Russell 2000 showed the most strength, sticking to its previous range, while Bitcoin rose sharply, and oil prices may have peaked. Currently, there’s a two-thirds chance that parts of Trump’s tariffs could be canceled. Meanwhile, the EUR/USD dropped to around 1.1600 because strong US data boosted the dollar. Gold and silver prices pulled back as tensions eased and the demand for safe-haven assets decreased. WTI crude is struggling to stay above $60 as its upward momentum weakens.

Disclaimer And Forward-Looking Statements

This article contains forward-looking statements. It encourages readers to do their own research before making financial decisions. FXStreet and the author are not responsible for any losses or damages from the information in this article. The author isn’t a registered investment advisor and does not provide personalized investment advice. The views expressed may not represent FXStreet’s official position. No business relationships or compensation have affected the content. The S&P 500 is uneasy about the delayed tariff ruling, not the latest PPI numbers. The CBOE Volatility Index (VIX) has risen above 18 this week, indicating that traders should consider strategies that benefit from large price movements, no matter the direction. Buying straddles or strangles on the SPX index is a direct way to prepare for the anticipated volatility once the ruling is released. The Russell 2000’s strength is a key indicator, as its domestic companies are less affected by international trade issues. This suggests a potential strategy of going long on Russell 2000 futures (RTY) while shorting S&P 500 futures (ES). A similar situation arose during trade disputes in 2025 when small-cap stocks outperformed for nearly two quarters.

US Dollar Strengthening And Commodity Market Implications

Meanwhile, the US dollar is gaining strength, with the DXY index staying above 105 as Fed officials indicate that inflation is still too high. This is pushing WTI crude below $60 a barrel and causing gold prices to drop from their recent highs around $4,600. Traders should be cautious with long positions in commodities until the Fed softens its stance or the dollar declines. Bitcoin is showing a significant increase, soaring past $120,000 while equities struggle. This shift indicates a move toward assets that aren’t directly influenced by government policies, supported by a 40% rise in institutional investments in crypto products during the last quarter of 2025. Using call options on Bitcoin futures or related ETFs could benefit from this continued momentum. Create your live VT Markets account and start trading now.

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