- Stock Rally Extends, Bonds Rise After Volatile Day: Markets Wrap
Asian stocks posted their biggest jump in more than two years as global financial markets rebounded after US
President Donald Trump paused most of his sweeping reciprocal tariffs. Treasuries rallied after a tumultuous
session. Shares across the region gained Thursday after the S&P 500 had its best day since the global financial
crisis. While equity-index futures for Europe surged more than 7%, contracts for US stocks declined, indicating
markets are still in a flux. Yields on 10-year Treasuries fell after a 34 basis point surge in the past three days
spurred worries about the stability of the world’s biggest debt market. Metals halted the longest run of losses
in 25 years. Chinese stocks advanced on expectations for more stimulus after Trump increased levies on the
country to 125%. The country’s top leaders are poised to meet Thursday to discuss additional economic
measures. Trump’s pivot came as the scale of the selloff in Treasuries market and days of mounting financial
stress rattled investors and spurred a recession warning from Jamie Dimon. The reprieve underscores the
pressure markets can bring to bear as Trump sought to remake the world trading order with 100-year high
levies. - Dow surges 2,900 points, S&P 500 posts biggest gain since 2008 on Trump tariff reversal
The stock market mounted one of its biggest rallies in history after President Donald Trump announced a pause
in some of his “reciprocal” tariffs on the globe, causing a market that has been under extreme pressure for the
past week to explode higher. The S&P 500 skyrocketed 9.52% to settle at 5,456.90 for its biggest one-day gain
since 2008. For the broad market index, it was the third-biggest gain in post-WWII history. The Dow Jones
Industrial Average advanced 2,962.86 points, or 7.87%, to close at 40,608.45 for its biggest percentage advance
since March 2020. The Nasdaq Composite jumped 12.16% to end at 17,124.97, notching its largest one-day
jump since January 2001 and second-best day ever. About 30 billion shares traded hands, making it the heaviest
volume day on Wall Street in history, according to records that go back 18 years. - Oil prices fall as Trump escalates trade war with China
Oil prices fell around 1% on Thursday as U.S. President Donald Trump ramped up a trade war with China, even
as he announced a 90-day pause on tariffs aimed at other countries. Brent futures fell 73 cents, 1.1%, to $64.73
a barrel by 01:08 a.m. GMT, while U.S. West Texas Intermediate crude futures lost 49 cents, or 0.8%, to $61.86.
The benchmarks had settled 4% higher on Wednesday after dropping as much as 7% during the session. Trump
raised the tariff rate for China to 125%, effective immediately, from the previously announced 104% tariff that
had kicked off earlier on Wednesday. China also announced an additional import levy on U.S. goods, imposing
an 84% tariff from Thursday. Meanwhile, U.S. crude inventories rose by 2.6 million barrels in the week to April
4, the Energy Information Administration said, nearly double the expectations in a Reuters poll for a 1.4-million
barrel rise. The Keystone oil pipeline from Canada to the United States remained shut on Wednesday following
an oil spill near Fort Ransom, North Dakota, while plans to return it to service were being evaluated, its
operator South Bow said. - Gold prices climb over 1% as Trump hikes China tariffs
Gold rose more than 1% on Thursday as investors flocked to safe-haven bullion after the U.S. hiked tariffs on
China, the top metals consumer, escalating the already heated trade war, despite a 90-day pause on tariffs for
other countries. Spot gold was up 1.2% at $3,119.18 an ounce, as of 0300 GMT. In the previous session, bullion
recorded its best day since October 2023. U.S. gold futures climbed 1.8% to $3,135.50. U.S. President Donald
Trump said on Wednesday that he would raise the tariff on Chinese imports to 125% from 104%. The world’s
two largest economies have engaged in a series of tit-for-tat tariffs over the past week. However, Trump
decided to temporarily lower the hefty duties he recently imposed on several countries. “If we enter a slow
growth period, which is our base case, we think rates will eventually head lower and push gold higher since
inflation worries will still be with us for much of the year due to tariff impacts,” Marex analyst Edward Meir
said.“Eventually we do see $3,200 possibly by month-end, if not earlier.” Gold, a hedge against global
uncertainties and inflation, has risen more than 18% in 2025, driven largely by Trump’s tariff plans,
expectations of interest rate cuts by the Federal Reserve, geopolitical tensions in the Middle East and Ukraine,
strong central bank buying, and increased investments in gold-backed exchange-traded funds. According
to minutes from the Fed’s latest meeting, policymakers were nearly unanimous last month in warning that the
U.S. economy faced risks of higher inflation alongside slower growth, with some noting “difficult tradeoffs”
may lie ahead. Non-yielding bullion stands to lose its appeal if inflationary pressures force the Fed to keep
interest rates higher. Traders now await U.S. Consumer Price Index data, due later in the day, and the Producer
Price Index on Friday. Spot silver firmed 0.2% to $31.08 an ounce, platinum lost 0.5% to $932.81
and palladium shed 1.2% to $922.72. - China consumer prices decline for a second straight month; producer deflation deepens
China’s consumer prices contracted for a second straight month, while producer price deflation got further
entrenched, as Chinese exporters brace for more pain amid an escalating trade war with the U.S. Consumer
price index slid 0.1% year on year in March, remaining in deflationary territory after having contracted 0.7% in
February, according to data released by the National Statistics Bureau Thursday. Economists polled by Reuters
had expected a flat reading compared to the same period last year. Producer prices fell for the 29th straight
month, dropping 2.5% in March from a year earlier and marking the largest contraction since November 2024.
The Reuters poll had expected a 2.3% decline. Core inflation, which strips out volatile food and fuel prices, rose
0.5%, rebounding from a drop of 0.1% in February, though still lower than the 0.6% growth in January. “We are
more likely to see a divergence between consumer prices and producer prices,” said Tianchen Xu, senior
economist at Economist Intelligence Unit, adding that core consumer prices have shown signs of picking up
while producer prices are set to deteriorate given trade disruption. “Chinese exporters are essentially
competing for a smaller global market,” he added. U.S. President Donald Trump ratcheted up tariffs on Chinese
imports to 125% overnight, up from 104%. Hours earlier, China had retaliated by hitting the U.S. with an 84%
tariff on Wednesday. The data signal a “potential inflection point driven by policy stimulus measures,
particularly initiatives aimed at boosting consumption,” said Bruce Pang,adjunct associate professor at Chinese
University of Hong Kong. “With recent policy commitments to curb aggressive price-cutting and additional
strategies to encourage household spending, the CPI is anticipated to exhibit further signs of a gradual recovery
in the coming months,” Pang said. Meanwhile, the deflationary pressure in producer prices is likely to persist,
given the uncertainties surrounding oil prices and external demand amid ongoing trade tensions, Pang said. - Investors flee to German bonds as Trump tariffs spark Treasury sell-off
Global bond markets were gripped by volatility on Wednesday, as the rollout of U.S. President Donald Trump’s
reciprocal tariffs left investors scrambling to find safety in new areas — including German debt. U.S. Treasurys
sold off as a new wave of duties came into force and China and the European Union announced fresh
retaliatory action, with the yield on the 10-year Treasury last seen trading 9 basis points higher at 4.352%. Bond
yields and prices move in opposite directions, as investors demand a lower price on the bond and a higher
return on their loan to lend to governments that they see as riskier holdings. Across the Atlantic, longer-dated
European government borrowing costs also rose. By 3:55 p.m. in London, the Italian 10-year yield was up 2
basis points and the yield on British 10-year government bonds, known as gilts, was up 12 basis points. The 30
year gilt yield soared up to 30 basis points at one point, marking a fresh 27-year high, and was last up 25 basis
points. Gilt yields are suffering spillover effects from the moves in Treasurys, but the gilt market is also generally
sensitive — relative to other high-grade bond markets — to catalysts that trigger yield rises given stretched
margin calls from hedge funds, Diana Iovanel, senior markets economist at Capital Economics, told CNBC. - Trump temporarily drops tariffs to 10% for most countries, hits China harder with 125%
President Donald Trump on Wednesday dropped new tariff rates on imports from most U.S. trade partners to
10% for 90 days to allow trade negotiations with those countries. Trump announced the pause hours after
goods from nearly 90 nations became subject to stiffer, so-called reciprocal tariffs imposed by the United
States. The president also said in a social media post that he was raising the tariffs imposed on imports
from China to 125% “effective immediately” due to the “lack of respect that China has shown to the World’s
Markets.” China, which is the U.S.’s third-largest trading partner, earlier Wednesday said it would increase its
tariff rate for imports from the U.S. to 84%. Trump said “more than 75 Countries” contacted U.S. officials to
negotiate after he unveiled his new tariffs last week. Stock market indices rocketed sharply higher Wednesday
on Trump’s announcement, reversing four days of losses. The benchmark S&P 500 index leapt by 7%, which
puts it on track for its largest single-day gain in five years. When asked later about the reason for his decision,
Trump told reporters, “Well, I thought that people were jumping a little bit out of line.” “They were getting
yippy, you know, they were getting a little bit yippy, a little bit afraid,” Trump said at the White House. Treasury
Secretary Scott Bessett claimed to reporters that Trump had always intended to put the brakes on the wide
ranging tariffs the president announced last week. “This was his strategy all along,” Bessent said at the White
House, where officials, including him, had denied for days that the tariffs would be suspended. - Bitcoin surges more than 7% in broad market relief rally as Trump pauses some tariffs
Bitcoin spiked on Wednesday afternoon after President Donald Trump said on social media that he authorized
a 90-day pause on tariffs. The price of the flagship cryptocurrency was last higher by more than 7% at
$82,305.55, according to Coin Metrics. Earlier, it fell as low as $74,567.02 as the benchmark 10-year U.S.
Treasury yield briefly climbed over 4.51% (it has since eased off that high). Ether, dogecoin and XRP each
gained more than 12%. The Solana token soared more than 14%. Bitcoin proxy stock MicroStrategy, recently
rebranded to Strategy, rocketed 23%. Robinhood jumped 24% and crypto exchange Coinbase jumped nearly
17%. Bitcoin’s surge coincided with the biggest rally since 2008 for the broad-market S&P 500 index, after
Trump said in a Truth Social post that he has “authorized a 90 day PAUSE, and a substantially lowered
Reciprocal Tariff during this period, of 10%, also effective immediately.” He also said he is raising the tariff on
China higher again to 125%. - China slaps 84% retaliatory tariffs on U.S. goods in response to Trump
Tariffs on U.S. goods entering China will rise to 84% from 34% starting April 10, according to a translation of a
Office of the Tariff Commission of the State Council announcement. The hike comes in response to the latest
U.S. tariff increase on Chinese goods to more than 100% that began at midnight. U.S. Treasury Secretary Scott
Bessent told Fox Business “this escalation is a loser” for China. - Walmart executives are confident that the world’s largest retailer will reach its financial targets this year,
despite tariff turbulence that’s sparking uncertainty in the world economy
Walmart said that it still sees net sales growing 3% to 4% this year. That forecast accounts for tariffs, unlike its
previous outlook from February. The company, which has historically performed well in economic downturns,
plans to keep prices low. This means it could take a short-term financial hit to maintain a price advantage
against competitors. The company widened the range of its outlook for operating income for this quarter,
acknowledging that its actions may weigh on the bottom line, but didn’t provide new guidance. The modest
shift in guidance for operating income points to “pressure points,” D.A. Davidson & Co. analyst Michael
Baker wrote. “Walmart’s signal to invest in prices could be a strategy to gain share and grow shares, but could
squeeze profit in the near term,” Baker said. Walmart shares rose 9.5%, following an announcement by
President Donald Trump that the US is pausing the implementation of higher tariffs for 90 days on countries
that have refrained from taking retaliatory measures. - United States Steel Corp. shares fell 11% in afterhours trading after President Donald Trump said he does
not want to see the steelmaker owned by a Japanese company
Trump, speaking from the Oval Office, pointed to the producer’s rising steel orders as evidence that it doesn’t
need any investment right now. He also said he doesn’t want US Steel bought by “any other place,” apparently
referring to other foreign buyers. Investors had in recent days boosted US Steel shares to the highest level since
March 2024 on hopes that Trump would reverse former President Joseph Biden’s decision to block Nippon
Steel Corp.’s bid to buy the US company. Trump on Monday ordered another national security review of the
proposed deal, which the US Committee on Foreign Investment has 45 days to finalize. Yet the president has
repeatedly said he did not want Nippon Steel Corp. to hold a majority stake in the company. “I mean, if you go
back to US Steel from 90 years ago, it was incredible, it was the number one company in the world for a long
time,” Trump said. “That’s why we don’t want to see it go to Japan, and we love Japan but US Steel is a very
special company.” - Chinese EV giant BYD expands in Europe with premium brand launch
Chinese electric car giant BYD is pushing ahead into Europe, launching its premium Denza brand in the region
despite rising trade tensions. The first model, the Z9GT, is set to arrive in European showrooms in the fourth
quarter of 2025, BYD said Wednesday during Brera Design Week in Milan. The company did not specify prices
or a delivery date for the station wagon-type car. The Z9GT for Europe will come in both battery-only and plug
in hybrid versions, BYD said. BYD already sells electric cars in Europe. The company initially formed the Denza
brand in 2010 with Daimler, now the Mercedes-Benz Group. The sub-brand was revamped in 2021 and sells
cars in China, with the German automaker reducing its equity interest to 10%. The European Union last year
announced 17% duties on imports of BYD battery electric vehicles over claims of “unfair” production subsidies.
Last month, Chinese and EU officials discussed issues related to the electric car supply chain during a meeting
in Beijing. - Delta Air Lines shares soared as Wall Street looked past the carrier’s suspended full-year financial
guidance. The airline issued better-than-expected first-quarter results. Analysts are defending the company
despite the uncertain outlook, saying that investors should be encouraged by Delta’s diverse revenue
streams, cost management and capacity growth reductions
Citi (buy, PT $72): “Overall, these results show a carrier with a resilient business model, in light of significant
uncertainties around demand and the global tariff controversy,” writes analyst Stephen Trent. Notes loyalty
program and travel-related services revenues rose 11% and 4%, respectively, while Delta continues to see solid
co-branded card remuneration. “It seems unfair to push management for suspending its full-year guide,
without some basic clarity on the broad political- and economic environment”. Morgan Stanley (overweight,
PT $95): Analyst Ravi Shanker says the debate on the state of the airline industry will likely continue after DAL’s
1Q print, 2Q guide, and FY non-guide — though bulls will likely be slightly happier than bears. “1Q came in
ahead of lowered expectations and while the 2Q guide is about 20% below cons. at the mid-point, it is likely
not too far off buyside expectations and it is encouraging that the high-end of the range is within touching
distance of cons.”. TD Cowen (buy, PT $45): Analyst Tom Fitzgerald says Delta not reaffirming its prior full year
guidance is “prudent,” and is encouraged by management’s emphasis on protecting margins and cash flow and
their intention to reduce 2H25 capacity growth to flat y/y. FIRST QUARTER RESULTS: Adjusted EPS 46c vs. 45c
y/y, estimate 39c. Adjusted revenue $12.98 billion, estimate $12.99 billion. Passenger load factor 81.4%,
estimate 81.9%. Available seat miles 68.40 billion, +4.4% y/y, estimate 68.45 billion. SECOND QUARTER
FORECAST: Sees adjusted EPS $1.70 to $2.30, est. $2.29.
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