- Stocks Gain on Tech Tariff Pause, Dollar Falls: Markets Wrap
Asian stocks advanced after President Donald Trump paused import duties on a range of consumer electronics,
lifting sentiment after a volatile week for markets. Gauges in the region gained along with equity-index futures
for the US and Europe as Trump halted some tech levies, though he indicated a specific tariff will be announced
in due course. While stocks got a temporary relief, concerns were building up in other corners of the market
about the US economy with the dollar weakening to a fresh low for the year. Gold, a traditional haven asset,
hit a record, indicating market participants still remain wary amid mounting confusion over Trump’s tariff
agenda. US Treasury yields edged down across the curve. The pause on duties on goods from smartphones to
laptop computers – most of which are made in China — offers an interim reprieve for markets ravaged by
Trump’s flip-flops on trade policy. Volatility shows little signs of easing after the White House signaled separate
duties on tech products, including semiconductor chips, are being planned as Trump tries to rewrite global
trade rules that he says aren’t in favor of the US. - Dow jumps 600 points Friday, capping one of the most volatile weeks on Wall Street ever
Stocks climbed Friday as Wall Street wrapped up a historically wild week. The S&P 500 advanced 1.81% to end
at 5,363.36. The Dow Jones Industrial Average rose 619.05 points, or 1.56%, and closed at 40,212.71. The
Nasdaq Composite climbed 2.06% to settle at 16,724.46. Stocks took a leg higher Friday afternoon on
comments from the White House that President Donald Trump is “optimistic” China will seek a deal with the
U.S. This week has been one of the most volatile periods on record for Wall Street. The major averages tumbled
Thursday as traders went into risk-off mode, with trade policy uncertainty weighing on sentiment. Stocks lost
a chunk of the historic gains seen on Wednesday after Trump announced a 90-day reprieve on some of his high
“reciprocal” tariffs. The S&P 500 fell 3.46% on Thursday, while the 30-stock Dow tumbled 1,014.79 points, or
2.5%. The tech-heavy Nasdaq ended the day lower by 4.31%. On Wednesday, the S&P 500 rallied 9.52% for its
third-largest gain in a single day since World War II, while the 30-stock Dow skyrocketed more than 2,900
points. Despite the tumultuous week, the three major averages notched solid gains in the period. The S&P 500
posted a 5.7% advance for its best week since November 2023. The Nasdaq rose 7.3% during the week for its
best performance since November 2022. The Dow gained nearly 5% over the week. - Oil extends decline as U.S.-China trade war weighs on global growth outlook
Oil prices fell on Monday on concerns the escalating trade war between the United States and China would
weaken global economic growth and dent fuel demand. Brent crude futures were down 29 cents, or 0.45%, at
$64.47 a barrel at 0126 GMT. U.S. West Texas Intermediate crude futures were trading at $61.23 a barrel,
down 27 cents, or 0.44%. Both contracts have lost about $10 a barrel since the start of the month as a trade
war between the world’s two largest economies has intensified. Goldman Sachs expects Brent to average $63
and WTI to average $59 for the remainder of 2025 and sees Brent averaging $58 and WTI $55 in 2026. It
sees global oil demand in the fourth quarter of 2025 rising by just 300,000 barrels per day year-on-year, “given
the weak growth outlook,” analysts led by Daan Struyven said in a note, adding that the demand slowdown is
expected to be the sharpest for petrochemical feedstocks. Beijing increased its tariffs on U.S. imports to 125%
on Friday, hitting back against President Donald Trump’s decision to raise duties on Chinese goods and raising
the stakes in a trade war that threatens to upend global supply chains. - Gold prices ease from record highs as Trump grants tariff exemptions
Gold prices retreated on Monday from a record high hit earlier in the session as trade tensions eased after U.S.
President Donald Trump exempted smartphones and computers from “reciprocal” U.S. tariffs. Spot gold was
down 0.1% at $3,232.45 an ounce, as of 0329 GMT. Bullion hit a record high of $3,245.42 earlier in the day.
U.S. gold futures edged 0.1% higher to $3,248.20. “Softer U.S. dollar has been assisting gold, but news of tech
product tariff exemptions lifted risk appetite and caused safe-haven demand to ease. This has caused gold to
lack clear direction,” said KCM Trade chief market analyst Tim Waterer. The White House announced
the exclusions from steep reciprocal tariffs on Friday. However, Trump bore down on Sunday on his
administration’s latest message that the exclusion of smartphones and computers from his reciprocal tariffs
on China will be short-lived. - Trump spares smartphones, computers, other electronics from China tariffs
U.S. President Donald Trump’s administration granted exclusions from steep tariffs on smartphones,
computers and some other electronics imported largely from China, providing a big break to tech firms like
Apple that rely on imported products. China said it was evaluating the impact of the exclusions. In a statement
on Sunday, the Ministry of Commerce called the move a “small step by U.S. to correct its wrong practice of
unilateral ‘reciprocal tariffs’.” “The bell on a tiger’s neck can only be untied by the person who tied it,” the
ministry said, urging the U.S. to make a major step in correcting what it called its wrongdoing and cancelling
the tariffs completely. In a notice to shippers, opens new tablate on Friday, the U.S. Customs and Border
Protection agency published a list of tariff codes excluded from the import taxes, with retroactive effect from
12:01 a.m. EDT (0401 GMT) on April 5. It featured 20 product categories, including the broad 8471 code for all
computers, laptops, disc drives and automatic data processing. It also included semiconductor devices,
equipment, memory chips and flat panel displays. - China exports skyrocket over 12% in March as trade war drives businesses to frontload shipments
China’s exports jumped more than expected in March as businesses frontloaded outbound shipments to avoid
prohibitive U.S. tariffs, while imports extended declines as sluggish domestic demand persisted. Exports
jumped 12.4% last month in U.S. dollar terms from a year earlier, according to data released by customs
authority on Monday, significantly outpacing Reuters’ poll estimates of a 4.4% growth and marking the biggest
jump since October last year. Imports fell 4.3% in March from a year earlier, compared with economists’
expectations of a 2% decline. In the first two months of the year, China’s exports had slowed more than
expected, growing just 2.3% year on year, marking the slowest rise since April 2024. Imports clocked a steeper
than-expected decline of 8.4% from a year ago, their sharpest fall since mid-2023. “Exports will likely weaken
in coming months as the U.S. tariffs [have] skyrocketed,” said Zhiwei Zhang, president and chief economist at
Pinpoint Asset Management, adding that “in the short term, I expect chaos in supply chains and potential
shortage in the U.S. that may drive up inflation.” Trade policies remained highly uncertain,
compounding challenges for businesses looking to adjust supply chains and capital spending plans, Zhang said.
“Even if firms decide to relocate their supply chains, it takes time to build factories.” The Chinese leadership
has set an ambitious annual growth target of “around 5%” this year, a goal seen harder to achieve given the
prospects of an escalating trade war and persistently lackluster domestic consumption. Since U.S. President
Donald Trump’s inauguration in January, he has imposed a cumulative 145% tariffs on all imports from China,
including a 20% duty allegedly related to Beijing’s role in fentanyl trade. China has struck back with tit-for-tat
tariff increases, including levies of up to 15% targeting select American goods and across-the-board tariffs
of 125% in the latest retaliation last Friday. - Singapore eases monetary policy for a second time; slashes GDP forecast after growth misses estimates
Singapore on Monday eased its monetary policy for the second straight time, as the city-state posted a lower
than-expected GDP growth of 3.8% for the first quarter, according to advance estimates. The Monetary
Authority of Singapore had eased its policy stance in its January meeting too, loosening policy for the first time
since 2020. The MAS said Monday it would reduce the rate of appreciation of its policy band known as the
Singapore dollar nominal effective exchange rate, or S$NEER.“MAS will continue with the policy of a modest
and gradual appreciation of the S$NEER policy band,” it said. The central bank strengthens or weakens its
currency against a basket of its main trading partners, thus effectively setting the S$NEER. The exact exchange
rate is not set, rather, the S$NEER can move within the set policy band, the precise levels of which are not
disclosed. Singapore’s year-on-year quarterly GDP growth missed expectations of 4.3% from economists polled
by Reuters, and was lower than the 5% expansion seen in the last quarter of 2024.
The country’s Ministry of Trade and Industry downgraded its GDP forecast to 0%-2% for 2025, down from its
previous outlook of 1%-3% — MAS also projected GDP growth of 0%-2% for 2025. In a release, MTI said the
growth slowdown was due to declines in manufacturing, as well as some services sectors such as finance and
insurance. The ministry said that due to the sweeping tariffs imposed by the U.S., as well as the U.S.-China
trade war, the growth outlook for both the U.S. and China will deteriorate. - UK economy expands by 0.5% in February, more than expected
The U.K. economy grew by a higher-than-expected 0.5% month-on-month in February amid a jump in the
services output, official data showed on Friday. Analysts had projected a monthly gross domestic product hike
of 0.1% in February, according to LSEG data. The Office for National Statistics, which published the provisional
figures, said a 0.3% expansion in the services sector had driven the surprise jump in growth. In January, services
had recorded a 0.1% monthly rise. Production output saw a substantial recovery in February, notching 1.5%
month-on-month growth compared to the monthly contraction of 0.5% seen in January. Construction output
also staged a recovery in February, adding 0.4% on the month after falling 0.3% in January. The British
pound jumped against the dollar after the data release, rising 0.6% against the greenback to trade at $1.3047
by 8:08 a.m. in London. In January, an early estimate showed the U.K. economy unexpectedly shrank by 0.1%
on a monthly basis. That figure was later revised upward to show that economic growth was flat in January.
The U.K. economy has struggled to gain momentum over the past year. ONS data showed earlier this year that
Britain’s GDP expanded by 0.1% in the fourth quarter of last year, after flatlining in the three months prior.
Friday’s figures are released as the U.K. braces for the economic impact of new 10% tariffs on its exports to the
United States. - US producer prices unexpectedly fall, dragged down by energy
US wholesale prices unexpectedly fell in March by the most since October 2023, restrained by energy costs and
adding to evidence of tame inflation leading up to a wave of tariffs. The producer price index fell 0.4% from a
month earlier following a revised 0.1% gain in February, according to a Bureau of Labor Statistics report
released Friday. The median forecast in a Bloomberg survey of economists called for a 0.2% gain. Excluding
food and energy, a measure of underlying wholesale inflation, the PPI eased 0.1%, compared with expectations
for a 0.3% gain. Key components that feed into the Federal Reserve’s primary inflation gauge were also soft. - JPMorgan Chase Reports Q1 Net Income of $14.6 Billion, Boosts Dividend
JPMorgan Chase & Co. (JPM, Financials) reported a 9% year-over-year increase in net income to $14.6 billion
for the first quarter of 2025, or $5.07 per diluted share, according to a statement from the company on Friday.
Revenue rose 8% to $46 billion. The New York-based bank said the results were supported by strength across
its markets and asset management divisions, as well as a $588 million gain related to the First Republic
acquisition. Return on common equity was 18%, while return on tangible common equity remained flat at 21%.
The company repurchased $7.1 billion in common stock and paid $3.9 billion in dividends during the quarter,
raising its common dividend by 12%. Its common equity Tier 1 capital ratio stood at 15.4%, and cash and
marketable securities totaled $1.5 trillion at the end of March. JPMorgan’s Consumer and Community Banking
segment posted net income of $4.4 billion, down 8% from a year earlier, due to higher credit costs and expense
growth. Card Services net charge-offs rose to 3.58%. Mobile customers were up 8% year over year. The
Commercial and Investment Bank division reported net income of $6.9 billion, up 5%. Markets revenue climbed
21% to $9.7 billion, with equity markets revenue jumping 48%. Investment banking fees rose 12% but fell 9%
sequentially. Asset and Wealth Management recorded a 23% gain in net income to $1.6 billion, driven by higher
fees on net inflows and rising market levels. Assets under management grew to $4.1 trillion, up 15% from the
prior year. - Wells Fargo (NYSE:WFC) Increases Net Income To US$4,894 Million Despite Lower Interest Income
Wells Fargo recently reported its first quarter 2025 earnings, highlighting a decline in net interest income, yet
an increase in net income and improved EPS figures. Despite the company’s positive earnings per share results,
its stock fell 4% over the past week. This decline contrasts with the broader market, where indexes saw gains
amid volatility due to trade tariff developments. Factors such as Wells Fargo’s lower interest income might
have added weight to the company’s stock move, countering the broader market trend of significant index
increases. Nonetheless, overall market performance remained relatively stable. The recent decline in Wells
Fargo’s stock price, despite positive earnings per share results, contrasts its overall five-year performance,
which saw a total return of 166.58%. This suggests that while short-term reactions to earnings can be
significant, long-term shareholders have benefited from substantial appreciation in their holdings. Over the
past year, Wells Fargo’s performance outpaced both the US Banks industry and the broader market, indicating
stronger relative resilience. - Morgan Stanley (NYSE:MS) Reports Increased Earnings and Declares US$0.93 Dividend
Morgan Stanley recently reported its first-quarter earnings, highlighting a rise in net income to $4,315 million
and a quarterly dividend of $0.925 per share, reinforcing its commitment to shareholder returns.
Simultaneously, the market experienced volatility influenced by tariff-related headlines and economic data,
which resulted in a mixed performance across sectors, including financials. Morgan Stanley’s 1.25% price
movement last week aligns with the broader market’s fluctuations, where financial stocks faced pressures amid
tariff discussions but managed slight gains following earnings reports from peers such as JPMorgan and
BlackRock. The positive first-quarter earnings report from Morgan Stanley, combined with its decision to
maintain a quarterly dividend of US$0.925 per share, underscores its ongoing focus on returning value to
shareholders. - Tesla stock moves lower as EV maker pulls US-made cars from China, adds cheaper Cybertruck trim in
US
Tesla is updating its model lineup both in China and the US due to tariffs and demand issues. Tesla removed
the “order” button from its China website for the Model S sedan and Model X SUV, which are higher-end Tesla
EVs that are built at its factory in Fremont, Calif. The move comes after China raised its tariffs on US imports to
125% from 84%. Chinese customers can still purchase the vehicles from existing inventory in the country.
Though Tesla only sold around 2,000 Model S and Model X EVs in China, the move highlights the precarious
situation Tesla and other automakers find themselves in amid a trade war world. Tesla stock was lower Friday
but is up around 5% over the past five days in a volatile week for the markets fueled by President Trump’s
erratic changes in trade policy. While Tesla’s sales in China rebounded in March with the launch of the
refreshed Model Y, Tesla’s total retail sales in China for the first quarter hit 134,607 units, up only 1.7% year
over year but down 31.6% sequentially compared to Q4 2024, per the China Passenger Car Association (CPCA)
as translated by CNEVPost.
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