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Wednesday Afternoon Coffee - Markets Update - 2 Apr 2025 - Markets Hold Steady, Gold Climbs as Investors Brace for Trump Tariffs
- The Trade Academy Team
- Apr 2
- 3 min read
Markets Update: Stocks showed minimal movement on Wednesday as markets remained steady in anticipation of a much-awaited tariff announcement by U.S. President Donald Trump. Meanwhile, gold continued its rally driven by safe-haven demand.
Global Markets Roundup: 2 Apr 2025
The White House plans to announce extensive reciprocal trade tariffs after the U.S. market closes, an action President Trump has called “Liberation Day.” These measures are anticipated to increase existing levies on aluminum, steel, automobiles, and Chinese imports, heightening concerns about a potential global trade war.
Stocks Flat, Investors Cautious Ahead of Tariff Details
U.S. equities traded mostly sideways in morning hours, following a muted session Tuesday. Gains in consumer discretionary and tech were offset by declines in healthcare and financials.
Dow Jones Industrial Average: +0.16% to 42,058.42
S&P 500: +0.11% to 5,639.12
Nasdaq Composite: +0.04% to 17,457.40
In Europe, stocks fell as tariff concerns weighed:
STOXX 600: -0.67%
MSCI World Index: +0.02%
Gold Nears Record, Safe Havens in Demand
Gold climbed as traders turned defensive, sending spot prices up 0.49% to $3,125.85 per ounce — near a fresh record. Gold futures gained 0.59% to $3,137.30, extending this year’s gains to nearly 19%.
"With financial markets on edge, gold continues to benefit from the flight to safety," analysts noted.
U.S. Treasury yields were mostly stable, reflecting caution rather than panic:
10-year yield: +0.7 bps to 4.165%
2-year yield: +2.6 bps to 3.889%
30-year yield: flat at 4.5136%
Dollar Slips Ahead of Tariff Clarity
The U.S. dollar fell against major peers as traders awaited tariff specifics.
Oil Mixed After Inventory Surprise
Crude prices were mixed as U.S. data showed an unexpected rise in stockpiles:
WTI Crude: +0.14% to $71.30
Brent Crude: -0.05% to $74.45
Soft Commodities
Chicago soybean futures experienced an increase on Tuesday, driven by expectations surrounding a meeting between a coalition of oil and biofuel groups and the U.S. Environmental Protection Agency (EPA). The discussion will focus on potential increases in federal mandates for biomass diesel blending.
In addition, corn and wheat futures also rose. Corn prices were bolstered by forecasts of wet weather in the U.S. Delta and Ohio Valley, as noted by analysts. Wheat prices benefited from a reported reduction in acreage by the U.S. Department of Agriculture on Monday.
The most active soybean contract, ZS1!, on the Chicago Board of Trade closed up 19-1/2 cents at $10.34-1/4 per bushel, marking its highest level since March 6. CBOT corn, ZC1!, ended up 4-1/2 cents at $4.61-3/4 per bushel, while wheat, ZW1!, gained 3-1/2 cents to close at $5.40-1/2 per bushel.
Job Data Overshadowed by Trade Tensions
Markets shrugged off a stronger-than-expected ADP employment report, showing a gain of 155,000 private payrolls, topping forecasts of 115,000. This came a day after the Labor Department reported a drop in job openings.
Lagarde, Markets Warn of Global Fallout
European Central Bank President Christine Lagarde warned tariffs would have a negative global impact, depending on duration, scope, and whether they result in successful negotiations.
With Trump’s 4 PM ET announcement looming, markets remain firmly on edge.
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