Cardinal’s Review

Geopolitics

The past week saw significant developments on the global stage. Chinese President Xi Jinping’s high-profile visit to Moscow underscored a deepening strategic partnership between China and Russia. The two leaders reaffirmed their “no limits” alliance, signaling to Washington that attempts to divide them are unlikely to succeed. This summit, set against the backdrop of the Ukraine war, highlighted China’s support for Russia and a shared commitment to a multipolar world order, challenging U.S. primacy. Meanwhile, the U.S. and China agreed to a 90-day truce on tariffs, sparking a surge in Pacific shipping and optimism in global markets, though long-term trade uncertainty remains. In South Asia, India and Pakistan experienced renewed tensions, with border clashes and drone incidents prompting defense spending and market volatility. The EU quietly considered ways to keep importing Russian gas despite sanctions, complicating U.S. LNG export prospects.

U.S. Stock Market

U.S. equities rallied sharply this week, led by tech giants. The S&P 500 erased its 2025 losses and turned positive for the year, buoyed by cooling inflation and optimism over the U.S.-China tariff ceasefire. Nvidia’s market cap soared past $3 trillion, and other “Magnificent 7” stocks like Tesla and Meta posted strong gains. The Nasdaq entered a new bull market, while the Dow lagged due to a steep drop in UnitedHealth shares following leadership turmoil. Wall Street analysts raised year-end targets for the S&P 500, citing easing recession fears and the tariff truce as key drivers. However, the healthcare sector saw losses, and some retailers like American Eagle Outfitters pulled financial forecasts, reflecting lingering uncertainty in parts of the market.

U.S. Housing Market

No major new developments in the U.S. housing market were reported in the last week in the provided search results. However, the broader context of easing inflation and positive equity trends may support housing demand and mortgage activity, while the Federal Reserve remains cautious on interest rate changes.

Crypto

The crypto market experienced a week of volatility. Major coins such as Bitcoin, Dogecoin, Cardano, and Solana saw profit-taking after a strong rally, with each dropping over 5% in the last 24 hours. Bitcoin hovered near $104,000, facing resistance as it approached previous all-time highs. Despite the pullback, institutional interest in Bitcoin remains strong, and Coinbase’s imminent inclusion in the S&P 500 is seen as a milestone for mainstream crypto adoption. New projects like Qubetics gained attention for their innovative approaches to cross-border transactions, reflecting ongoing dynamism in the sector.

Trump Prescription Executive Order

On Monday, President Trump signed a sweeping executive order aimed at slashing U.S. prescription drug prices by tying them to the lowest prices paid in other wealthy countries. The order directs the Secretary of Health and Human Services to set price-reduction targets within 30 days and negotiate with pharmaceutical companies. If negotiations fail, a “most favored nation” policy will be imposed, capping U.S. prices at the lowest global rates. Unlike previous efforts, this order extends beyond Medicare to include Medicaid and private insurance. The move is expected to face fierce resistance from the pharmaceutical industry, and its impact on privately insured Americans remains uncertain. Trump claims the policy could reduce drug prices by 30% to 80%, with weight-loss drugs likely included in the targeted list.

We are dropping an in depth analysis on the impact from recent trade negotiations on Stocks, Housing, and everything else. So keep an eye out for that - We plan to publish Friday afternoon!