Risk assets are facing challenges, worsened by disappointing consumer confidence and difficulties in passing Trump’s tax cut without significant spending cuts.

Stock values have declined, while bond yields are also decreasing.

This risk-averse climate has impacted crude oil, which fell below $70, hitting stops in the process.

Currently, WTI crude oil is priced at $69.54, marking its lowest level since December 27.

The mood in financial markets has turned cautious, with investors reacting to weaker consumer sentiment and obstacles in advancing tax reductions without cutting government expenditure. Shares have slid, and government bond yields are moving lower, reflecting this shift towards safer options.

Oil has not been immune. Prices for WTI crude tumbled below $70 per barrel, triggering automatic selling orders along the way. With its current valuation at $69.54, this marks the weakest price seen in nearly five months. That drop suggests a change in sentiment, as traders adjust their positions in response to shifting demand expectations and external pressures.

Looking beyond oil, broader markets are showing similar patterns. Fixed-income assets are strengthening as money moves away from stocks. Lower yields indicate expectations of slower growth or a different monetary policy outlook. Meanwhile, equity markets remain under pressure, reflecting concerns about how policy decisions will affect economic expansion.

James has pointed out that investor confidence remains fragile, particularly in areas linked to discretionary spending. With consumers hesitant, businesses reliant on steady demand may struggle. His focus is on how this affects company earnings, which are already being revised. A decline in consumer purchasing power could feed into corporate results over the coming months.

Emma expects volatility to remain high, especially in commodities. Short-term traders are adjusting quickly. She notes that many are positioning for further declines, particularly if broader economic readings continue to disappoint. The abrupt move lower in crude has reinforced how fast sentiment can shift when automatic selling levels are hit.

Mark is watching movements in credit markets. Adjustments in bond pricing reflect expectations of future policy direction. He highlights how lower yields on government debt suggest shifting views on interest rates. If rate expectations begin to change, that would alter pricing across multiple asset classes.

At this stage, positioning matters. Short-term strategies may need adjusting in response to rapid swings in sentiment. Trading desks are closely monitoring developments in fiscal policy and economic readings, given their influence on asset prices. In the coming weeks, adjustments in pricing may reflect changing views on growth and policy expectations.