Tuesday Afternoon Coffee - Markets Update - 15 Apr 2025 - Stocks Rebound After Tariff Rout; Treasury Yields Climb on Trade Hopes

Markets Update: U.S. stocks declined on Tuesday, failing to maintain the initial optimism driven by strong bank earnings and a temporary pause in tariff tensions. Meanwhile, government bonds and the dollar recovered after significant drops last week.

Global Markets Roundup: 15 Apr 2025

The market’s mood remained fragile despite signs of policy softening. President Donald Trump on Monday floated the idea of modifying the 25% tariffs on auto and auto parts imports from countries like Mexico and Canada. That came after exemptions announced Friday for smartphones, computers, and other electronics under his "reciprocal" tariff policy.

Equities Slip Despite Strong Bank Results

The Dow Jones Industrial Average lost 0.3%, while the S&P 500 dipped 0.3% and the Nasdaq Composite fell 0.4%. Shares of Bank of America, Citigroup, and Wells Fargo bucked the broader trend, rising after all three reported strong first-quarter earnings.

Global Markets Rebound as Investors Seek Relief

Outside the U.S., equities rallied. Europe’s STOXX 600 rose 1.6%, led by a 2.3% jump in the autos and parts sector. Asia-Pacific markets also gained, with MSCI’s index climbing 1% and Japan’s Nikkei adding 0.8%. Automakers Toyota and Denso led Tokyo’s advance.

Still, uncertainty over the durability of U.S. trade policy shifts kept investors on edge.

Treasuries Rise, Fed Policy in Focus

U.S. Treasury yields continued their retreat from last week’s spike. The benchmark 10-year yield fell 4 basis points to 4.325%, building on Monday’s sharp decline of nearly 13 basis points. Federal Reserve officials signaled diverging views. Governor Christopher Waller said tariffs could prompt rate cuts even amid persistent inflation. Atlanta Fed President Raphael Bostic urged patience until there’s more clarity on the economic outlook. Markets are currently pricing in about 80 basis points of easing by year-end.

Dollar Rebounds, Gold Near Record

The U.S. dollar strengthened, with the Dollar Index DXY up 0.4%. Still, some analysts warned that the longstanding narrative of U.S. economic out-performance is losing steam. Meanwhile, spot gold rose 0.5% to $3,226 an ounce, hovering just shy of its all-time high, as investors continued to seek safety amid policy uncertainty.

Oil Dips, Cocoa Slumps on Weak Demand

Oil prices slipped as the International Energy Agency cut its global demand forecast. U.S. crude fell 0.5% to $61.20 a barrel, while Brent dropped to $64.56, also down 0.5%. Cotton futures rallied between 65 and 91 points in a "Turnaround Tuesday" bounce, but cocoa extended losses. ICE New York cocoa dropped 2.97% to close at $8,002, while London cocoa fell 3.06%.

Grains Ease Off Recent Highs

Grain prices were lower across the board:

Corn (ZC1!): -3¾¢ to $4.81¼/bushel
Soybeans (ZS1!): -4¼¢ to $10.37½/bushel
Wheat (ZW1!): -5¼¢ to $5.42¼/bushel

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team