Tuesday Afternoon Coffee - Markets Update - 8 Apr 2025 - Stocks Rebound After Tariff Rout; Treasury Yields Climb on Trade Hopes

Markets Update: Wall Street rebounded on Tuesday after a three-day decline, with major indexes achieving strong gains as investors speculated on a potential reduction in the U.S.–China tariff conflict. U.S. Treasury yields rose for the second consecutive session, and oil prices also recovered along with equities.

Global Markets Roundup: 8 Apr 2025

President Donald Trump said he was still waiting for a response from Beijing before a slate of new tariffs—some exceeding 100%—take effect, though top officials downplayed the urgency of negotiations. Despite ongoing tensions, the market saw signs of hope.

Tech, Oil Lead Gains; Earnings Season Kicks Off

Tech stocks led the S&P 500 higher, with semiconductors rallying sharply. Energy shares also advanced as oil prices edged up.

Dow Jones Industrial Average: +820.50 points (+2.16%) to 38,786.10
S&P 500: +101.39 points (+2.00%) to 5,163.64
Nasdaq Composite: +322.41 points (+2.07%) to 15,925.67

The rally precedes the beginning of the U.S. earnings season, with JPMorgan Chase, Citigroup, and Wells Fargo scheduled to report on Friday. Optimism about robust bank earnings may support the ongoing rebound, although JPMorgan CEO Jamie Dimon has cautioned that trade wars could lead to enduring economic effects, such as inflation and recession.

Global Stocks and Bonds React

MSCI’s world stock index jumped 2.10%, and Europe’s STOXX 600 surged 2.72% after a four-day slump. Japan’s Nikkei climbed 6%, its best single-day gain in months.

U.S. Treasury yields rose again as risk sentiment improved:

10-year yield (US10Y): +3.8 bps to 4.195%
2-year yield (US2YT): +4.1 bps to 3.779%

Investors are still watching closely as volatility persists. Beijing reiterated it “will never accept blackmail” over tariffs, reinforcing trade tensions.

Dollar Slips; Commodities Mixed

The U.S. dollar softened, while traders weighed whether trade disputes will force the Federal Reserve to act sooner.

Dollar Index DXY: -0.12% to 103.31
Euro EURUSD: +0.02% to $1.0906
Yen USDJPY: -0.58% to 146.98

Meanwhile, crude oil rose, supported by broader risk appetite:

WTI crude (CL1!): +0.51% to $61.01/barrel
Brent (BRN1!): +0.16% to $64.27/barrel

Gold futures gained 1.6% to $3,022.80/oz as demand for safe-haven assets remained firm.

Agriculture and Soft Commodities

Cocoa extended its decline, with ICE NY cocoa down 3.70% and London cocoa off 3.80%, both hitting multi-week lows.
Cotton futures were broadly lower, down 56 to 77 points across front contracts.
Soybeans (ZS1!) rose 8½¢ to $9.91½/bushel, recovering from recent lows.
Corn (ZC1!) added 3½¢ to $4.68/bushel.
Wheat (ZW1!) gained 2¼¢ to $5.38¾/bushel.

Markets continue to be highly responsive to trade developments, with volatility likely to persist as investors prepare for new tariffs scheduled to take effect on Wednesday.

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