- Stocks Rise Led by Japan on Auto Tariff Reprieve: Markets Wrap
Asian shares gained, led by Japan, as US President Donald Trump floated a potential pause in auto tariffs,
providing further relief to the market after suspending levies on some consumer electronics. Indexes in Japan
rose more than 1% with companies such as Toyota Motor Corp. and Honda Motor Co. jumping. Futures
contracts for the S&P 500 pared earlier losses. Shares in China and Hong Kong fluctuated. Treasuries climbed,
and a gauge of the dollar edged higher to trim some of its decline on Monday. - Dow jumps 300 points, S&P 500 closes higher as tech shares rise after tariff exemptions
Stocks rose in a choppy session on Monday, helped by a rally in tech names following a surprise U.S. tariff
exemption from President Donald Trump. The Dow Jones Industrial Average added 312.08 points, or 0.78%, to
close at 40,524.79. The Nasdaq Composite rose 0.64% to end at 16,831.48, while the S&P 500 added 0.79%
and settled at 5,405.97. All three indexes at times traded in negative territory during the turbulent session.
Investors cheered Trump’s exemption of smartphones and computers, as well as other devices and
components such as semiconductors, from his new “reciprocal” tariffs, according to new U.S. Customs and
Border Protection guidance issued late Friday. But Trump and Commerce Secretary Howard Lutnick then
suggested Sunday that the exemptions are not permanent, stirring up more tariff uncertainty. Trump said in a
Truth Social post that these products are still “subject to the existing 20% Fentanyl Tariffs, and they are just
moving to a different Tariff ‘bucket.'” - U.S. crude oil steady after OPEC cuts demand forecast on Trump tariffs
U.S. crude oil prices held steady Monday after OPEC cuts its demand growth forecast for this year on President
Donald Trump’s tariffs. U.S. crude oil rose 3 cents to close at $61.53 per barrel, while global
benchmark Brent gained 12 cents to settle at $64.88 per barrel. OPEC now sees demand for crude growing by
1.3 million barrels per day this year and next year, down about 150,000 barrels per day from its previous
estimates, according to the cartel’s monthly report. Oil prices rose nearly 2% earlier in the session on Trump’s
decision to exempt key tech products such as smartphones from his tariffs on China. The president has slapped
145% tariffs on China, while hitting pause on higher duties for most other countries for the next 90 days to
allow negotiations. Prices found some support after U.S. Energy Secretary Chris Wright said Friday that Trump
could stop Iran’s oil exports if a deal was not reached on the Islamic Republic’s nuclear program. The U.S. and
Iran held talks in Oman on Saturday and will meet again on April 19. U.S. crude is down more than 14% and
Brent has fallen more than 13% since April 2 when Trump announced his sweeping tariff plans. Prices are also
under pressure from the decision by OPEC+ to accelerate production starting in May. - Gold takes a breather after record run as risk sentiment improves
Gold prices dipped on Monday, retreating from a record high hit earlier in the day, as risk appetite improved
after the White House exempted smartphones and computers from steep tariffs on China. Spot gold was down
0.7% at $3,213.69 an ounce after hitting an all-time high of $3,245.42. U.S. gold futures settled 0.6% lower at
$3,226.30. “Some risk-on trading here got us off the recent highs, but still the environment is pretty good for
gold,” said Bart Melek, head of commodity strategies at TD Securities. Risk sentiment in wider financial markets
ticked higher after Washington announced the exclusion of certain electronics from President Donald Trump’s
tariffs. GLOB/MKTS “Perhaps some relief on the tariff front, with the exemption of some electronics (is) maybe
taking some of the safe haven bid out,” said Peter Grant, vice president and senior metals strategist at Zaner
Metals. “However, ongoing uncertainty about trade and tariffs, weakness in the dollar and softer yields tend
to be supportive for gold.” Trump said on Sunday he would be announcing the tariff rate on imported
semiconductors over the next week, keeping market participants on edge. Supporting gold, the dollar was
languishing near a three-year low against its rivals. The trade war between the United States and China has
rattled global markets and driven investors into the metal, which is traditionally viewed as a hedge against
geopolitical and economic uncertainty. Goldman Sachs remained most bullish among major banks on gold,
raising its year-end forecast to $3,700, citing stronger-than-expected central bank demand and heightened
recession risks affecting ETF inflows. Investment flows into Chinese physically backed gold exchange-traded
funds so far this month have exceeded those for all of the first quarter and overtaken inflows registered by
U.S.-listed funds, World Gold Council data showed. Spot silver rose 0.1% to $32.27 an ounce, while platinum
gained 1% to $952.1. Palladium rose 4.6% to $957.27. - South Korea announces over $23 billion for chip sector as Trump tariffs on semiconductor imports loom
as heightened
South Korea announced Tuesday a support package of 33 trillion won ($23.25 billion) for its vital semiconductor
industry, uncertainty over U.S. tariffs threatens domestic companies.
This comes after U.S. president Donald Trump reportedly said he would be announcing the tariff rate on
imported semiconductors soon, after exempting them from his steep “reciprocal” tariffs last Friday. In a social
media post Monday, Trump vowed to investigate the “whole electronics supply chain” on national security
grounds. The U.S. Department of Commerce also released a notice saying it will initiate an investigation “to
determine the effects on national security of imports of semiconductors, semiconductor manufacturing
equipment, and their derivative products.” South Korea’s funding support was about a quarter more than the
26 trillion committed last year, according to a press release from the finance ministry. As part of the measures,
the government will subsidize the construction of underground power transmission lines to semiconductor
clusters, as well as increase the funding ratio for infrastructure in advanced industrial complexes to 50% from
30%. A total of 20 trillion won of low-interest loans to semiconductor companies will be offered between 2025
and 2027, up from the current 17 trillion won. - Taiwan to simulate impact of U.S. tariffs on semiconductor sector
Taiwan will simulate the impact of any U.S. tariffs on the semiconductor industry and seek talks with
Washington on the issue, the island’s economy minister said Tuesday. The Trump administration is probing the
import of chips, along with pharmaceuticals, in a bid to impose tariffs on both on grounds that extensive
reliance on foreign production of semiconductors and medicine is a national security threat. The United States
relies heavily on chips imported from Taiwan, a reliance former President Joe Biden sought to end during his
term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the country.
Speaking to reporters outside parliament, Taiwan Economy Minister Kuo Jyh-huei said he would seek to discuss
the matter with the United States and ensure “fair competition” for Taiwanese industry. The Taiwanese and
U.S. chip sectors are complementary, he added. “As to how much (the tariffs) could be, we will of course carry
out simulations,” Kuo said. “On the tariffs issue, we will try as hard as possible to communicate with the U.S.
side.” The level of chip tariffs will be “the outcome of talks”, he added, without elaborating. Taiwan is home
to TSMC, the world’s largest contract chipmaker and a major supplier to companies including U.S. tech
giants Apple and Nvidia. - Goldman Sachs (GS) Q1 Earnings and Revenues Beat Estimates
Goldman Sachs (GS) came out with quarterly earnings of $14.12 per share, beating the Zacks Consensus
Estimate of $12.71 per share. This compares to earnings of $11.58 per share a year ago. These figures are
adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.09%. A quarter
ago, it was expected that this investment bank would post earnings of $8.07 per share when it actually
produced earnings of $11.95, delivering a surprise of 48.08%. Over the last four quarters, the company has
surpassed consensus EPS estimates four times. Goldman, which belongs to the Zacks Financial – Investment
Bank industry, posted revenues of $15.06 billion for the quarter ended March 2025, surpassing the Zacks
Consensus Estimate by 0.27%. This compares to year-ago revenues of $14.21 billion. The company has topped
consensus revenue estimates four times over the last four quarters. The sustainability of the stock’s immediate
price movement based on the recently-released numbers and future earnings expectations will mostly depend
on management’s commentary on the earnings call. Goldman shares have lost about 13.7% since the beginning
of the year versus the S&P 500’s decline of -8.8%. - Pinnacle Financial (PNFP) Tops Q1 Earnings Estimates
Pinnacle Financial (PNFP) came out with quarterly earnings of $1.90 per share, beating the Zacks Consensus
Estimate of $1.82 per share. This compares to earnings of $1.53 per share a year ago. These figures are adjusted
for non-recurring items. This quarterly report represents an earnings surprise of 4.40%. A quarter ago, it was
expected that this regional bank operator would post earnings of $1.80 per share when it actually produced
earnings of $1.90, delivering a surprise of 5.56%. 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. Over the last four quarters, the
company has surpassed consensus EPS estimates four times. Pinnacle Financial, which belongs to the Zacks
Banks – Southeast industry, posted revenues of $462.85 million for the quarter ended March 2025, missing the
Zacks Consensus Estimate by 3.27%. This compares to year-ago revenues of $428.14 million. The company has
topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock’s
immediate price movement based on the recently-released numbers and future earnings expectations will
mostly depend on management’s commentary on the earnings call. - Palantir stock jumps after NATO finalizes purchase of AI military system
Palantir (PLTR) stock rose 4.6% on Monday after NATO announced it had finalized the acquisition of an AI
military system from the Denver-based defense tech firm. Details of the deal were not disclosed, but NATO
said it would begin using Palantir’s technology — the Maven Smart System NATO (MSS NATO) — in the next
30 days. MSS uses AI to compile and analyze data for “battlespace awareness and planning,” including the
identification of military targets. Palantir stock had gained as much as 9% before forfeiting some of these gains
in morning trade alongside a broader market decline. A version of MSS is already in use by the US military —
specifically, the Army, Air Force, and Space Force — and Palantir won a $100 million contract with the US
military to extend its access to the software in September. The company has seen an upswing in American
government spending on its AI war tech, recording $1.57 billion in revenue from US government contracts in 2024. Palantir’s role in AI-enabled warfare has come under some criticism, and the tech firm was dumped by a
large-scale Nordic investor last fall over human rights concerns related to its work with the Israeli Defense
Force. - Apple leads tech stocks higher on Trump’s temporary tech tariff reprieve
Apple (AAPL) led the “Magnificent Seven” stocks higher Monday as investors cheered the Trump
administration’s temporary tariff exemptions for tech products announced over the weekend. US Customs and
Border Protection issued regulations late Friday exempting consumer electronics, networking equipment, and
computing products — including GPUs and servers — from reciprocal tariffs. Taken together, the products
represent $340 billion in global imports, with China accounting for $100 billion of the exclusions, Bernstein
analyst Stacy Rasgon wrote in an analysis early Monday. Apple stock rose over 2%. The exemptions cover
almost all of its products — smartphones, personal computers, tablets, smartwatches, and other accessories,
according to Citi analyst Atif Malik. - Intel to sell majority stake in Altera for $4.46 billion to fund revival effort
Intel has agreed to sell a 51% stake in its Altera programmable chip business to buyout firm Silver Lake for
$4.46 billion, in the first major move by new CEO Lip-Bu Tan to revive the struggling American chipmaker.
Monday’s deal values Altera at just $8.75 billion compared to the nearly $17 billion Intel (NASDAQ:INTC) paid
in 2015, but the sale will provide the company much-needed cash after hefty bets on contract manufacturing
by former CEO Pat Gelsinger strained its finances. Shedding assets, including Intel’s stake in Altera, is at the
center of Tan’s strategy to streamline the chipmaker after predecessors failed to diversify beyond its mainstay
PC and server chip business for years. The leadership missteps have left Intel struggling to gain a footing in the
AI industry dominated by Nvidia (NASDAQ:NVDA), while rival AMD (NASDAQ:AMD) threatens its stronghold of
the central processor market. “Today’s announcement reflects our commitment to sharpening our focus,
lowering our expense structure and strengthening our balance sheet,” said Tan, who took the helm after
Gelsinger’s ouster in December. Intel shares were up 2.8% in afternoon trading. Since last year, Intel has taken
steps to spin out Altera, which makes programmable chips that can be used for various purposes in industries
ranging from telecom to the military. The deal is expected to close in the second half of 2025, after which Intel
expects to deconsolidate Altera’s financial results from its own. Raghib Hussain, a former executive at custom
AI chipmaker Marvell (NASDAQ:MRVL), will succeed Sandra Rivera as Altera CEO from May 5.
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