TL;DR

Trump unveils $175B missile shield; China, Russia tensions rise; Target, UnitedHealth stocks fall on earnings, probe.

Highlights

• Trump unveils $175B “Golden Dome” missile defense project 1; China condemns move, warns of arms race and legal action over US chip export controls on Huawei 23.
• Bank of Japan consults on slowing bond-buying as JGB market volatility persists; rising yields raise risk of spillover into global rates and FX 4.
• Russia launches largest drone attack on Kyiv; Ukraine strikes Russian military plant; US steps back from new sanctions while Ukraine urges EU for tougher action 518.
• gold rises to $3,306/oz, up 3% this week; Goldman Sachs lifts year-end target to $3,700 amid macro uncertainty and central bank buying 6.
• US importers accelerate shipments ahead of 90-day tariff reset with China, driving 277% surge in imports and higher freight rates; major retailers warn of price hikes as tariffs loom 1415.
• UnitedHealth shares down nearly 7% premarket after report of secret nursing home payments, adding to ongoing CEO exit and criminal probe 7.
• Target misses Q1 earnings, cuts outlook; stock drops 4.8% on weak sales and margin pressure 8.
• Lowe’s beats Q1 EPS and affirms full-year outlook despite revenue miss; shares up ~2.5% 12.
• Medtronic to spin off $2.5B diabetes business within 18 months after Q4 beat; FY26 EPS guidance below consensus 13.
• Hedge funds add $25B in US equity shorts; short interest in S&P 500 stocks above historical average; XBI among top ETF shorts 17.
• BlackRock and Fidelity buy over $590M in Bitcoin and Ethereum ; US Bitcoin ETFs see $1.7B in 5-day inflows 1011.
• SEC sues Unicoin and executives for alleged $100M crypto fraud 9; Google launches AI-powered search update, expected to reduce external web traffic 20.
• Bloomberg Terminal outage disrupts UK gilt auction and global market operations 16.

Commentary

Geopolitical and trade risks are front and center for US markets. The Trump administration’s $175B “Golden Dome” missile shield announcement—aimed at countering China and Russia—has drawn immediate condemnation from Beijing 12, which is also threatening legal action over new US chip export restrictions targeting Huawei 3. The combination of defense escalation and tech decoupling raises headline risk for sectors exposed to China, defense contractors like Lockheed Martin , and global supply chains. Meanwhile, the Russia-Ukraine conflict saw its largest drone exchange to date 5, with the US stepping back from new sanctions and Ukraine urging the EU to take a harder line—further complicating the risk landscape for energy and defense 18.

Macro volatility is elevated. The Bank of Japan’s ongoing consultation on bond-buying reduction comes as JGB yields rise and liquidity concerns mount, increasing the risk of capital flows back to Japan and potential pressure on US Treasury yields and the dollar/yen cross 4. Hedge funds are positioning defensively, adding $25B in equity shorts and increasing short interest in S&P 500 names, with biotech (XBI ) among the most-shorted ETFs 17. The Bloomberg Terminal outage, while temporary, underscores the operational fragility of key market infrastructure 16.

On the US consumer and corporate front, the 90-day tariff truce with China has led to a surge in pre-tariff imports and higher freight rates 14, but major retailers including Walmart , Target , and Best Buy warn of likely price hikes as 30% tariffs approach 15. Target ’s Q1 miss and guidance cut (stock down 4.8%) highlight ongoing consumer price sensitivity and margin pressure 8, while UnitedHealth ’s premarket drop (-7%) follows reports of questionable cost-cutting practices and adds to sector-specific regulatory risk 7. In contrast, Lowe’s outperformed on EPS and reaffirmed its outlook 12, and Medtronic ’s planned diabetes business spin-off reflects continued portfolio optimization in medtech 13.

Safe-haven demand remains strong: gold is up 3% this week and trading above $3,300/oz, with Goldman Sachs projecting $3,700 by year-end, driven by central bank buying, a weaker dollar, and fiscal concerns 6. Crypto is also attracting institutional flows, with BlackRock and Fidelity’s recent purchases and US Bitcoin ETFs seeing $1.7B in inflows over five days 1011. Regulatory scrutiny continues, as the SEC sues Unicoin 9 and Google ’s AI search update threatens to reduce traffic to external publishers 20.

Traders should monitor cross-asset volatility, potential spillover from Japanese bond markets, and ongoing tariff and consumer price developments. Defensive positioning in gold , crypto, and select defense names may continue, while retail and healthcare stocks face headline and margin risk.