DFM and ADX Climb as US Market Advances 

Josh Gilbert, Market Analyst at eToro 

Just a week ago, markets were clouded by uncertainty as investors weighed the fallout from rising geopolitical tensions – but true to form in 2025, investors stayed the course. Josh Gilbert, Market Analyst at eToro, shares that calm prevailed, and confidence returned, with the S&P 500 and Nasdaq both climbing to fresh record highs. Closer to home, Dubai’s DFM broke into new territory, and Abu Dhabi’s ADX surged more than 2% in a relief rally, as regional investors mirrored global resilience. 

So far this year, we’ve seen USD $165 billion flow into US equity funds, putting them on track for their third-largest annual haul in history. It’s a clear sign that investors are still backing equities, even in the face of looming risks, and the UAE is no exception, with renewed activity and improved sentiment across both DFM and ADX.  

Markets have some big tests ahead. Q2 earnings season kicks off within the next week, the ASX reporting season is fast approaching, and Trump’s looming tariff deadline within the next 10 days adds another layer of uncertainty. Each of these will serve as key pressure points that could dent sentiment and test this market rally. While this week is relatively quiet on the earnings front, all eyes will be on vehicle delivery numbers, with Tesla’s highly anticipated second-quarter update set to take centre stage on Wednesday. It’s a pivotal moment for Tesla, shares are down 15% this year, and anything short of a solid delivery update could deepen investor concerns. 

Last Friday’s PCE reading likely sets up the Fed to keep rates steady through mid-year; the key for US stocks to keep driving higher will be a reassuring earnings cycle and a strong consumer as we go into the second half of the year. S&P500 earnings are set to grow by 2.8% through Q2, which would mark the slowest growth in two years, a slightly tepid growth forecast that may put record highs and valuations in the spotlight.