Labor Day (May 1 and 2, 2025)

Global markets turned their attention to central bank policy as the ECB's Sintra Forum and key inflation data took center stage. 

Global markets entered the week with investors focused on the upcoming US labor market report, which is expected to provide the next major signal for Federal Reserve policy. The US dollar remained near its highest level in more than a year after last week’s strong rally, supported by hawkish comments from Fed Chair Kevin Warsh and growing expectations of further monetary tightening. At the same time, renewed military clashes between the United States and Iran in the Strait of Hormuz briefly reignited inflation concerns before both sides agreed to suspend military action ahead of another round of peace talks in Doha.

Global markets opened the week cautiously as investors balanced renewed U.S.–Iran tensions with hopes for diplomatic progress ahead of peace talks in Doha.