OP Wire 5/7 (OP – Lite)

By Steve

Markets Tick Higher Ahead of U.S.-China Trade Talks & Fed Decision

U.S. stock futures pointed slightly higher early Wednesday as traders focused on two key catalysts: renewed U.S.-China trade negotiations and the Federal Reserve’s rate decision due later today.

After Tuesday’s pullback—sparked by President Trump’s aggressive rhetoric toward international trade partners—investors are hoping today’s developments will offer clarity and opportunity.

During a meeting with Canadian Prime Minister Mark Carney, Trump reinforced his stance, saying the U.S. doesn’t needto sign trade deals—other countries have to sign with us. That combative tone continues to stir volatility, especially after last month’s aggressive rollout of new tariffs, followed by a 90-day delay designed to calm panicked markets.

Now, all eyes turn to Treasury Secretary Scott Bessent, who will meet with China’s Vice Premier He Lifeng and U.S. Trade Representative Jamieson Greer this weekend in Switzerland. While Beijing has agreed to the meeting, it issued a stern warning: no deal will be made under “coercion or blackmail.”

China remains under sweeping U.S. tariffs of at least 145%, and has retaliated with 125% levies of its own—putting the world’s two largest economies at the center of Trump’s trade offensive.

FED DAY — Eyes on Powell

The Federal Reserve wraps up its latest policy meeting today, with the market widely expecting no change to interest rates.

However, the real focus is on what Fed Chair Jerome Powell says in his press conference afterward. Traders want insight into whether the Fed will maintain its wait-and-see stance, or hint at possible cuts later this year amid pressure from Trump.

While U.S. GDP contracted in Q1, strong consumer spending and labor market resilience have muddled the Fed’s path forward. Powell may also be asked to address the growing tension over central bank independence, as Trump continues to criticize the Fed’s cautious rate policy.

STOCKS TO WATCH

Advanced Micro Devices (AMD) – Shares rose in extended trading after the company beat Q2 sales guidance. Analysts believe the beat was fueled by clients rushing to make purchases ahead of looming U.S. tariffs.

CEO Lisa Su warned the $1.5 billion hit from export restrictions on AI chips to China will be most felt in Q2 and Q3.
Still, AMD expects double-digit growth in annual data center AI chip revenue.

Upcoming earnings today:

Uber (UBER)
Walt Disney (DIS)
Arm Holdings (ARM)

Gold Drops, Oil Rises

Gold fell sharply by 1.3% to $3,386.97/oz, as renewed trade optimism softened haven demand and the dollar firmed ahead of the Fed.
Meanwhile, U.S. crude oil rose after API data showed a 4.5M barrel draw in inventories last week—signaling healthy demand.

TECHNICAL LEVELS — $QQQ on Watch

The $QQQ tech index remains in a coiled range, less than 1% below the 200-day moving average around 490.

Support: 480–485 must hold for bulls to build a base
Resistance: 490 (200-day MA). A clean break and hold above this level flips resistance into support and opens the door for a push to 500+
Momentum: Still neutral, but sentiment may shift quickly following FOMC commentary or trade headlines

Gold hovers near all-time highs above $3,400/oz.
Bitcoin trades near $97,000, inching closer to the key $100K level.

OP COMMUNITY UPDATE

Hats off to everyone who banked on yesterday’s winning alert play! Another OP classic.

REMINDER:
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OP Wire 5/7 (OP – Lite)

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