• Bitcoin surged 2.86% (5.11σ) as geopolitical tensions eased, leading to higher risk sentiment across markets. • Heating oil plummeted 8.21% (3.70σ) amid falling crude prices following renewed stability in the Strait of Hormuz. • WTI crude oil dropped 7.26% (3.33σ) following decreased geopolitical risk, fueling a rally in equities. --- **Recommendations** • Consider adding exposure to Bitcoin and altcoins, as bullish sentiment may extend amid easing geopolitical tensions. • Look to short energy sector ETFs such as XLE, as ongoing declines in oil prices point to a potential trend reversal. • Rotate into tech equities, especially mega-cap stocks like Apple and Tesla, which benefited from strong buying pressure and positive analyst sentiment. --- The market wrapped up the week on a decidedly upbeat note, buoyed by easing geopolitical tensions surrounding Iran's declaration of the Strait of Hormuz being open for shipping. According to Reuters, this led to a notable rally in U.S. equities, with the S&P 500 and Nasdaq both gaining over 1%. Such developments mitigated fears of disruption in energy supplies, instigating a significant sell-off in crude oil and heating oil, which fell 7.26% and 8.21% respectively. Additionally, Bitcoin surged sharply, climbing 2.86% on news that tensions had cooled, allowing leveraged positions to revert from liquidations. On the economic calendar, today's releases were overshadowed by the broader geopolitical landscape. Notably, speeches from FOMC members and President Trump reiterated a focus on maintaining a dovish policy stance, aligning with the Atlanta Fed's GDPNow estimate of 1.31% for Q1 2026—suggesting continued growth, albeit at a sluggish pace—consistent with a Slowdown/Stability/Dovish macro regime. Despite a stable inflation backdrop indicated by the unchanged core CPI, market participants remain cautious, as inflationary pressures could rekindle depending on global developments. U.S. Treasury yields reflected this risk-on sentiment, with longer maturities such as the 30-year note rising 4.0 bp to 4.93%. However, yields on shorter-dated securities remained subdued, with the overall yield curve signaling a flattening trend as traders adjusted their expectations for potential Fed rate cuts—a clear reflection of the market's view on policy paths ahead. Moody's corporate yields also saw upward pressure, primarily due to increased spreads uptake from riskier classes, contributing to the mixed signals within the credit markets. Equities across the board soared, highlighted by a strong performance from mega-cap tech stocks: Tesla and Apple advanced by 3.01% and 2.59%, respectively—reinforced by positive news concerning growth and strategic positioning in key markets. Notably, the consumer discretionary sector performed well, gaining 2.36% as investor sentiment improved. This contrasts with a sharp decline in the energy sector, which fell 2.76% as crude prices remained under pressure. In commodities, the significant changes were stressed by the energy market's sell-off, while elsewhere, precious metals like gold rose modestly on safe-haven demand, as geopolitical fears receded, suggesting fluctuating sentiment towards risk. Notable unusual moves included Bitcoin's remarkable climb alongside Ethereum's concurrent surge of 3.34%, capturing investor interest towards the crypto sector amid volatile trading conditions. With leveraged positions bouncing back, the crypto market momentum may suggest a shift towards risk-on appetite going forward. The composite liquidity regime signal remains positive at +3.546 despite deteriorating momentum (-0.413). This reflects an ongoing environment where liquidity conditions are tightening yet not at an alarming pace. The session's relief rally aligns with the liquidity's building effects, although investors should remain alert to the fragile state of credit spreads and inflation expectations as stress signals remain in the background. Given this context, market participants should brace for movements as the Fed's stance at upcoming FOMC meetings takes shape, with the next critical decision point on May 7 expected to lean towards maintaining its current target range. Looking ahead, the upcoming week features several key earnings reports and geopolitical developments. Investors should focus on upcoming releases and assess any shifts around core inflation metrics that may emerge, likely reshaping speculative positioning and market sentiment.