- Dollar, Stock Futures Decline as Trump Berates Fed: Markets Wrap
A gauge of the dollar fell to the lowest since January 2024 and US stock-index futures retreated after
President Donald Trump’s criticism of the Federal Reserve raised concerns over its independence. The
greenback weakened against every major currency after the National Economic Council Director Kevin
Hassett said Friday Trump is studying whether he’s able to fire Fed Chairman Jerome Powell. Those comments
prompted hedge funds to sell the dollar on Monday, traders said. Gold, which typically has an inverse
relationship with the US currency, rose to a record. Treasuries dropped and the yen strengthened. - Nasdaq falls more than 2% to post sixth straight losing day as Nvidia craters 10%
The Nasdaq Composite fell for a sixth straight session on Friday, notching its longest losing streak in more than
a year. The downtrend comes as Nvidia dived, adding to recent market woes tied to geopolitical conflicts and
sticky inflation. The tech-heavy Nasdaq pulled back 2.05% to 15,282.01, while the broad S&P 500 slipped 0.88%
to 4,967.23, below the 5,000 level. Both clinched their sixth straight negative days, streaks not seen for either
since October 2022. The Dow Jones Industrial Average rose 211.02 points, or 0.56%, to finish at 37,986.40. The
30-stock index was lifted by a rally of more than 6% in American Express following earnings. Netflix retreated
more than 9% even after quarterly earnings beat on the top and bottom lines. The streamer’s subscribers
jumped 16% from the previous year, but it said it would no longer report paid memberships starting in 2025.
Chip stocks were also under increasing pressure in afternoon trading, a sign that investors were rotating heavily
out of the sector that led the bull market. Nvidia slipped 10%, registering its worst day since March 2020. Super
Micro Computer plunged more than 23%. While tech put downward pressure on the market, investor concerns
over intensification of the Middle East conflict following Israel’s limited strike on Iran appeared largely shaken
off by Friday’s open.Oil prices briefly spiked more than 3%, but swung between more modest gains and losses
in the hours since. Dow futures at one point fell more than 500 points overnight amid fears that the attack was
enough to spark a broader war. - Oil prices fall as progress in U.S.-Iran talks eases supply concerns
Oil prices fell about 1% on Monday after nuclear talks between the United States and Iran progressed, reducing
the concerns that the dispute will reduce supply from the major Middle Eastern producer. Brent crude
futures slipped 70 cents, or 1.03%, to $67.26 a barrel at 0030 GMT after closing up 3.2% on
Thursday. U.S. West Texas Intermediate crude was at $64 a barrel, down 68 cents, 1.05%, after settling up
3.54% in the previous session. Thursday was the last settlement day last week because of the Good Friday
holiday. The U.S. and Iran agreed on Saturday to begin drawing up a framework for a potential nuclear deal,
Iran’s foreign minister said, after talks that a U.S. official described as yielding “very good progress.” The
progress on the nuclear discussions follows further sanctions by the U.S. last week, including against a China
based teapot oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran amid the talks.
Teapot is an industry term for smaller, independent processors. Concerns about tightening Iranian oil supply
and hopes for a trade deal between the United States and the European Union, pushed both Brent and WTI up
about 5% last week, their first weekly gain in three weeks. - Gold soars to record high on trade war concerns, weaker dollar
Gold prices surged to a record high on Monday, spurred by concerns over global economic growth due to the
spiraling Sino-U.S. trade war, with a weaker dollar further boosting the rally. Spot gold had advanced 1.7% to
$3,383.87 an ounce as of 0246 GMT, after hitting a record high of $3,384 earlier in the session.
U.S. gold futures firmed 2% to $3,396.10. The dollar index hit a three-year low, making gold more attractive for
other currency holders. “Fundamentally, markets are pricing in heightened geopolitical risks, driven by U.S.
tariff tensions and stagflation concerns, while resilient central bank demand offers an added tailwind for prices
as well,” said IG market strategist Yeap Jun Rong. U.S. President Donald Trump announced “reciprocal tariffs”
on dozens of countries on April 2 and while his administration has paused levies for some countries, it has
ratcheted up its trade battle with China. China on Monday warned countries against striking a broader
economic deal with the United States at its expense, a move Trump is reportedly seeking from countries
seeking tariff reductions or exemptions. Meanwhile, Trump launched a series of attacks against Federal
Reserve Chair Jerome Powell on Thursday, with his team evaluating whether they could fire Powell.
On the geopolitical front, Russia and Ukraine accused each other of thousands of attacks that violated the one
day Easter ceasefire declared by President Vladimir Putin, with the Kremlin saying there was no order to extend
the pause in frontline fighting. These issues bode well for the safe haven bullion. “The next potential milestone
for gold could be around the $3,500 level, though positioning may appear crowded in the near term and
technical indicators suggest near-term overbought conditions,” Rong said. Spot silver added 0.3% to $32.66 an
ounce, platinum gained 0.3% to $969.68, while palladium fell 0.3% to $959.43. - China vows retaliation against countries that follow U.S. calls to isolate Beijing
China has warned it will retaliate against countries that cooperate with the U.S. in ways that compromise
Beijing’s interests, according to a statement from the Chinese Ministry of Commerce. The threat comes as U.S.
President Donald Trump’s administration is reportedly planning to use tariff negotiations to pressure U.S.
partners to limit their dealings with China. “China firmly opposes any party reaching a deal at the expense of
China’s interests. If this happens, China will not accept it and will resolutely take reciprocal countermeasures,”
the Chinese Ministry of Commerce said, according to a CNBC translation. - China keeps key lending rates steady in bid to shore up yuan as Trump tariffs pressure currency
China expectedly kept its loan prime rates unchanged Monday, with the 1-year LPR at 3.1% and the 5-year at
3.6% as the central bank appears focused on stabilizing the yuan amid trade tensions with the U.S. The decision
from the People’s Bank of China comes as China reported better-than-expected economic data this month,
with first-quarter GDP growing at 5.4% year on year, allowing it room to keep rates steady. Retail sales and
industrial output numbers for March also beat expectations from economists polled by Reuters. The 1-year
LPR influences corporate and most household loans in China, while the 5-year LPR serves as a benchmark for
mortgage rates. The PBOC has kept the LPRs steady since October last year. Following the announcement,
the Chinese onshore yuan was trading flat at 7.2995 against the dollar, while the offshore yuan marginally
strengthened to 7.2962 against the greenback. Mainland China’s CSI 300 rose 0.36%. The PBOC decision was
in line with a Reuters poll of economists, with 87% expecting the PBOC to keep rates steady. - Tariffs-spared Kremlin says a global war trade would still hurt Russia
Russia escaped unscathed from President Donald Trump’s trade tariffs, but the Kremlin says it’s not immune
from the economic aftershocks that could ensue in a potential global trade war. No trade tariffs were imposed
on Russia when President Donald Trump’s administration announced global levies back in early April. The
White House stating that Moscow had escaped duties as there was “no trade” with the country anyway, given
Western sanctions on Russia following its invasion of Ukraine. - Eli Lilly shares jump 14% on positive results for its ’Ozempic in a pill’
Shares of Eli Lilly and Company (NYSE:LLY) surged over 14% Thursday following the announcement of positive
Phase 3 trial results for orforglipron, a pioneering oral medication for type 2 diabetes. Some analysts are
referring to the drug as “Ozempic in a pill.” The drug, which is the first oral small molecule GLP-1 receptor
agonist to successfully complete a Phase 3 trial, demonstrated significant efficacy in improving glycemic control
in adults with type 2 diabetes. The company’s optimism about the potential of orforglipron is based on the
ACHIEVE-1 trial results, which showed the drug met its primary endpoint of superior A1C reduction compared
to placebo at 40 weeks. Analysts highlighted that the oral diabetes medication showed similar efficacy and
safety compared to Novo Nordisk’s (NYSE:NVO) weekly injectable of semaglutide, sending the Ozempic
maker down 7.7% on the session. Patients experienced an average A1C decrease of 1.3% to 1.6% from a
baseline of 8.0%. Additionally, over 65% of participants on the highest dose achieved an A1C level of less than
or equal to 6.5%, the threshold defined by the American Diabetes Association for diabetes management. The
study also revealed significant weight loss among participants, with an average loss of 16.0 lbs (7.9%) at the
highest dose, suggesting that the full weight reduction potential had not yet been reached by the study’s end.
These results position orforglipron as a promising new treatment option for individuals managing type 2
diabetes, with the added convenience of being a once-daily pill without food and water restrictions. - Ford halts shipments of vehicles to China amid tariffs
Ford Motor said on Friday it has halted shipments of its SUVs, pick-up trucks and sports cars to China, as it
starts to face the heat from retaliatory tariffs that have seen vehicles face taxes as high as 150%. “We have
adjusted exports from the U.S. to China in light of the current tariffs,” Ford said in a statement. The company
this week halted shipments of its F-150 Raptors, Mustangs and Michigan-built Bronco SUVs as well as Kentucky
made Lincoln Navigators to China. The development comes as U.S. automakers scramble to find ways to tackle
President Donald Trump’s on-again, off-again tariffs, which are expected to dent profits of carmakers and parts
suppliers likewise. The Wall Street Journal was first to report on the halt, citing people familiar with the matter.
Ford’s exports of U.S.-built engines and transmissions to China are expected to continue despite the pause on
exports of assembled vehicles. Its Lincoln Nautilus model, which is manufactured in China, is also expected to
have continued shipments, despite heavy tariffs. Ford is among the best-placed automakers to weather tariffs,
as it produces about 80% of its U.S.-sold vehicles domestically. Still, the automaker is expected to raise prices
of its new vehicles if tariffs continue, according to an internal memo sent to dealers that was seen by Reuters. - American Superconductor (AMSC) Surpasses Q3 Earnings and Revenue Estimates
American Superconductor (AMSC) came out with quarterly earnings of $0.16 per share, beating the Zacks
Consensus Estimate of $0.07 per share. This compares to earnings of $0.03 per share a year ago. These figures
are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 128.57%. A
quarter ago, it was expected that this wind turbine component maker would post earnings of $0.04 per share
when it actually produced earnings of $0.27, delivering a surprise of 575%. Over the last four quarters, the
company has surpassed consensus EPS estimates four times. American Superconductor , which belongs to the
Zacks Electronics – Miscellaneous Components industry, posted revenues of $61.4 million for the quarter ended
December 2024, surpassing the Zacks Consensus Estimate by 8.01%. This compares to year-ago revenues of
$39.35 million. 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. American
Superconductor shares have added about 2.8% since the beginning of the year versus the S&P 500’s gain of
2.7%.
