- Asian Stocks, US Futures Slide After Nvidia Curbs
A two-day rally in global stocks stalled as US trade conflicts showed no signs of abating after the Trump
administration imposed new restrictions on Nvidia Corp.’s chip exports to China. Chinese technology
companies led Asian stocks lower, while equity-index futures for the US and Europe retreated along with Nvidia
in after-hours trading. Treasuries were little changed after a two-day rally while gold hit a record in demand
for haven assets. The dollar pared some of its Tuesday advance while the Swiss franc and the euro led gains
against most currencies. Japanese long-term bonds rallied. A brief consolidation in stocks – after the turmoil
last week – is slipping as traders are again dealing with a slew of tariff headlines, including US President Donald
Trump launching a probe into the need for levies on critical minerals. The flip flops have roiled global markets
this month as investors struggle to take long-term positions due to the unpredictability of policy
announcements from Washington. - S&P 500 falls marginally Tuesday as tariff volatility subsides
U.S. stocks posted modest losses on Tuesday as investors analyzed the latest batch of first-quarter earnings
reports and enjoyed a recent decline in market turmoil. The Dow Jones Industrial Average lost 155.83 points,
or 0.38%, to close at 40,368.96. The S&P 500 declined 0.17% and ended at 5,396.63. The Nasdaq
Composite ticked down 0.05% and settled at 16,823.17. The three averages are coming off back-to-back
winning sessions. Tuesday’s muted moves were in stark contrast to the volatile swings seen in recent sessions.
The CBOE Volatility Index, or VIX, known as Wall Street’s “fear gauge,” fell to about 30 after hitting a high of
around 60 last week. - Oil subdued as markets assess effects of trade war
Oil prices were flat early on Wednesday, as shifting U.S. trade policies fueled uncertainty while markets
assessed the potential impact of the U.S.-China trade war on economic growth and energy demand.
Brent crude futures rose 5 cents, or 0.1%, to $64.72 per barrel by 0039 GMT, while U.S. West Texas
Intermediate crude was up 3 cents, or 0.1%, to $61.36. Both benchmarks fell 0.3% on Tuesday.
Global oil demand is expected to grow at its slowest rate for five years in 2025 and U.S. production rises will
also taper off, due to U.S. President Donald Trump’s tariffs on trading partners and their retaliatory moves, the
International Energy Agency said on Tuesday. World oil demand this year is expected to rise by 730,000 barrels
per day, the IEA said, sharply down from 1.03 million bpd expected last month. The reduction is larger than
a cut made on Monday by the Organization of the Petroleum Exporting Countries. “As the IEA highlighted,
demand growth will likely remain modest, and the imbalance between global crude oil supply and demand is
weighing on the market,” said Tetsu Emori, CEO of Emori Fund Management. “If the stock market – currently
under pressure from tariffs – rebounds, we could see a rally in oil prices pushing WTI above $65. But without
that support, prices will likely stay in the low $60s,” he said. Concerns over Trump’s escalating tariffs, combined
with rising output from OPEC+, a group comprising OPEC and its producing allies such as Russia, have already
dragged oil prices down roughly 13% so far this month. - Safe-haven gold hits record high on weaker dollar, trade war concerns
Gold prices hit an all-time peak on Wednesday as a weaker dollar, escalating trade tensions and concerns over
global economic growth increased demand for the safe-haven bullion. Spot gold rose 1.3% to $3,270.12 an
ounce, as of 0319 GMT. It scaled a peak of $3,275.20 per ounce earlier in the session. U.S. gold futures gained
1.4% to $3,286.30. “A confluence of factors such as dollar depreciation and ongoing risk aversion are working
in gold’s favor,” said Tim Waterer, chief market analyst at KCM Trade. The dollar index fell 0.4% against its
rivals, making gold more attractive for other currency holders. Further escalating trade tensions
between the U.S. and China, Nvidia on Tuesday said it would take $5.5 billion in charges after the U.S.
government limited exports of its H20 artificial intelligence chip to China. Adding to this, China ordered its
airlines not to take any further deliveries of Boeing BA.N jets in response to the U.S. slapping 145% tariffs on
Chinese goods. “Gold will continue to be strong as long as there’s uncertainty,” said Brian Lan, managing
director at Singapore-based dealer GoldSilver Central. Gold, traditionally viewed as a safe-haven investment
during times of geopolitical and economic uncertainty, has hit multiple record highs this year and is up
over 24% so far in 2025. “We believe risk-off purchases for gold are yet to pick up,” analysts at ANZ said
and raised the bank’s year-end gold price forecast to $3,600 per ounce and six-month forecast to $3,500.
Investors now await U.S. retail sales data, due later in the day, on insights into the economy and the Federal
Reserve’s monetary policy trajectory. Traders currently expect around 87 basis points of Fed rate
reductions by end-2025. Spot silver rose 0.1% to $32.32 an ounce, platinum fell 0.3% to $956.64
and palladium was steady at $971.10. - India’s inflation falls to cooler-than-expected 3.34% in March
India’s annual inflation rate fell to a lower-than-expected 3.34% in March, the country’s Ministry of Statistics
and Programme Implementation reported Tuesday. The reading fell for a fifth straight month and came in
slightly below the 3.61% seen in February, as growth in food prices continued to soften. Economists polled by
Reuters had expected a reading of 3.6%. Food inflation, which is a key constituent of the country’s consumer
price index, hit 2.69%. The decline was led by a fall in prices for vegetables, spices, eggs and pulses. The inflation
data follows a second straight interest rate cut by the Reserve Bank of India at its meeting on April 9, bringing
its policy rate to 6% amid growth concerns in the world’s fifth largest economy. The RBI estimates inflation at
4% — at the midpoint of its target range of 2% to 6% — for financial year ending March 2026, although it noted
that core inflation in February — which excludes food and fuel prices — spiked to a 15-month high of 4.1%,
driven mostly by an uptick in gold prices. “There has been a substantial and broad-based seasonal correction
in vegetable prices. The uncertainties on rabi [winter] crops have abated considerably … Along with robust
kharif [autumn] arrivals, this is expected to set the stage for a durable softening in food inflation,” the central
bank said last week. - China’s first-quarter GDP tops estimates at 5.4% as growth momentum continues amid tariff worries
China’s economy expanded by a better-than-expected 5.4% in the first quarter, maintaining a strong
momentum, even as U.S. tariff threats prompt major investment banks to slash the country’s annual growth
outlook. The first-quarter GDP topped Reuters’ poll expectations for a 5.1% growth year on year, building on a
recovery that began in late 2024, thanks to a broad policy stimulus push. Retail sales in March rose by 5.9%
year on year, according to data from National Statistics Bureau on Wednesday, sharply beating analysts’
estimates for a 4.2% growth. Industrial output expanded by 7.7% from a year earlier, versus median estimates
of 5.8%. Fixed asset investment grew 4.2% in the first quarter against estimates of a 4.1% increase in a Reuters
poll. However, the drag from real estate worsened within fixed asset investment, down by 9.9% for the year as
of March, while infrastructure and manufacturing investment picked up pace. The urban unemployment rate
slipped to 5.2% in March, following a two-year high of 5.4% in February. The statistics bureau described the
Chinese economy as “off to a good and steady start” and emphasized how “innovation [was] playing an
increasingly leading role.” Chinese startup DeepSeek in January revealed its AI breakthrough that rivals tech
from U.S.-based OpenAI. But the officials warned that “the external environment is becoming more complex
and severe” and that domestic demand remained insufficient. “We must implement more proactive and
effective macro policies, expand and strengthen the domestic economy … and actively respond to the
uncertainties of the external environment,” the bureau said in an English-language release. 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. - U.S. issues export licensing requirements for Nvidia, AMD chips to China
The U.S. Commerce Department said on Tuesday it was issuing new export licensing requirements for Nvidia’s
NVDA.O H20, AMD’s AMD.O MI308 artificial intelligence chips, as well as their equivalents, to China. “The
Commerce Department is committed to acting on the President’s directive to safeguard our national and
economic security,” a Commerce spokesperson said. Nvidia said earlier Tuesday that it would take $5.5 billion
in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China, a key market
for one of its most popular chips. - Bank of America Shares Climb After Q1 Top Estimates With $6.99B Profit
Bank of America (NYSE:BAC) shares rose 3% on Tuesday morning after posting stronger-than-expected first
quarter earnings, driven by higher revenue and a solid performance across its core businesses. The lender
reported adjusted earnings of $0.90 per share for the three months ended March 31, up from $0.83 a year
earlier. That figure came in above the consensus forecast of $0.82 from analysts, with estimates ranging from
$0.78 to $0.85. Revenue increased nearly 6% year over year to $27.51 billion, outpacing expectations of $26.99
billion. Net income for the quarter came in at $6.99 billion. The latest results come amid a tough macro
backdrop for U.S. banks, with rising funding costs and slower loan growth continuing to weigh on the sector. - Citigroup (NYSE:C) Sees Q1 2025 Earnings Growth With Net Income Rising To US$4 Billion
Citigroup recently reported strong first-quarter earnings, with net income and net interest income both
showing marked year-over-year growth. The company’s share price reflected this positive performance, rising
7% over the past week. This increase coincided with the broader uplift in the market, which rose 7% as banks
and tech stocks led indices higher. While Citigroup’s earnings report likely supported the stock’s rise, the
company also benefited from market trends, with a general optimism about financials buoying its share price
in line with sector trends rather than exceeding overall market movements. The recent boost in Citigroup’s
share price following its strong Q1 earnings aligns positively with its ongoing transformation and technology
investments. These initiatives aim to improve efficiency and drive revenue growth, potentially strengthening
Citigroup’s operating leverage in line with the earnings report. Nevertheless, any enhancement in revenue and
earnings forecasts will likely need to factor in elevated costs tied to transformation efforts and regulatory
challenges. With this in mind, investors might view the positive market reaction as a reinforcement of
Citigroup’s longer-term growth aspirations, though near-term profitability could remain pressured by these
higher expenses. - Johnson & Johnson (NYSE:JNJ) Increases Dividend and Reports Strong Q1 Earnings Growth
Johnson & Johnson recently announced a 4.8% increase in its quarterly dividend and released positive Phase 3
clinical data for icotrokinra, an oral treatment for plaque psoriasis. These events occurred alongside solid
earnings reports, with a significant rise in net income and earnings per share compared to the previous year.
While the company’s stock price increased by 6.64% over the last quarter, the broader market also trended
upward, climbing 5.9% in the past year. These company developments likely complemented the overall market
movements and investor sentiment, rather than diverging from broader trends. Johnson & Johnson’s recent
dividend increase and positive Phase 3 clinical data for icotrokinra could significantly bolster investor
confidence by enhancing perceptions of future earnings potential and revenue growth. The company’s total
return, including dividends, was 17.11% over the past five years, indicating steady but moderate financial
performance. This is set against the backdrop of a one-year underperformance relative to the US
Pharmaceuticals industry’s 7% decline. - United Airlines (NASDAQ:UAL) Exceeds Q1 Expectations, Stock Soars
Airline company United Airlines Holdings (NASDAQ:UAL) reported Q1 CY2025 results exceeding the market’s
revenue expectations , with sales up 5.4% year on year to $13.21 billion. Its non-GAAP profit of $0.91 per share
was 23.8% above analysts’ consensus estimates. United Airlines (UAL) Q1 CY2025 Highlights: Revenue: $13.21
billion vs analyst estimates of $13.13 billion (5.4% year-on-year growth, 0.6% beat); Adjusted EPS: $0.91 vs
analyst estimates of $0.74 (23.8% beat); Adjusted EBITDA: $1.26 billion vs analyst estimates of $1.28 billion
(9.6% margin, 1.2% miss); Operating Margin: 4.6%, up from 0.8% in the same quarter last year; Free Cash Flow
Margin: 18.7%, up from 11.8% in the same quarter last year; Revenue Passenger Miles: 59.52 billion, up 2.09
billion year on year; Market Capitalization: $21.53 billion. “Our strategy coming out of the COVID pandemic
was simple: Build the best airline in the world to attract brand-loyal customers. The people of United Airlines
have executed and built that airline,” said United CEO Scott Kirby. - Netflix Stock Pops After Report Streaming Giant Aims To Double Revenue by 2030
Netflix (NLFX) shares jumped Tuesday following a report company executives laid out ambitious targets at a
business review meeting last month. Executives said the streaming giant aims to double the $39 billion in
revenue Netflix brought in last year, with a global ad sales target of $9 billion by 2030, The Wall Street
Journal reported Monday, citing people familiar with the matter. The streaming giant also aims to reach
a market capitalization of $1 trillion by 2030, the report said, up from roughly $419.2 billion. The only U.S.
companies with a market cap above $1 trillion today include Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA),
Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Berkshire Hathaway (BRK.A, BRK.B). Netflix did not
immediately respond to a request for comment. Shares were up more than 5% in recent trading Tuesday,
leading gains on the S&P 500. They’ve added about 60% of their value over the past 12 months. Last week,
Morgan Stanley analysts named Netflix a “top pick,” arguing the company could be well-positioned to
withstand the current tariff landscape. The streaming giant has shown “momentum” in its core subscription
business, the analysts said. That momentum lowers the company’s overall risk, the bank added, even if the
advertising market struggles amid rising trade tensions.
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