| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 40,527.62 | 300.03 | 0.75% |
| S&P 500 | 5,560.83 | 32.08 | 0.58% |
| Nasdaq | 17,461.32 | 95.18 | 0.55% |
| VIX | 24.17 | -0.98 | -3.90% |
| Gold | 3,325.60 | -8 | -0.24% |
| Oil | 60.25 | -0.17 | -0.28% |
US MARKET
US stocks gained some traction on Tuesday, tracking the positive session for Treasuries after pessimistic economic data and corporate signals supported wagers of incoming rate cuts. The S&P 500 and the Nasdaq 100 were higher 0.7% each, and the Dow gained 0.9%. Job openings in the US were at 7.19 million in March, lower than expected, while the CB sentiment survey pointed to a surge in pessimism. Likewise, tariff concerns drove the US to post its largest trade cap on record. Markets moved to price 100bps in cuts by the Fed for the year, compared to the central bank’s 50bps signal last month. The USD was up 0.2%, Gold down 0.8%.
A cohort of stock bulls are fuelling a comeback in equities, even as Trump’s tariff turmoil shows no sign of letting up with the economic toll rising by the day. One theory holds that investors are fearful of missing out on the early phase of the market bounce, mindful of the long history of US rebounds.
In the latest pivot in Trump’s trade strategy, the president is set to sign an executive order easing the impact of his auto tariffs, preventing duties on foreign-made vehicles from stacking on top of other levies and lessening charges on parts from overseas used to make vehicles in the US. So, the ‘Trump put’ is real for equities while the ‘Fed put’ is real for the economy??? Well, we will see about the former.
On earnings and guidance, Honeywell and Pfizer jumped more than 5% and 4% each on strong earnings, and software companies were higher across the board. Still, trade and economic policy uncertainty drove UPS to refrain from giving a full-year outlook, pressuring their shares by 2%. Also, GM sank 4% after it cancelled its share buyback and pulled its outlook due to the possibility of tariffs.
By the way, regarding earning results this week from Microsoft Corp., Apple Inc., Meta Platforms Inc. and Amazon.com Inc., Microsoft, Amazon, and Apple are the most shorted stocks in S&P 500. Read into that what you will, but it can obviously lead to the possibility of a short squeeze.
LOCAL MARKET
The Australian sharemarket closed at a two-month high on Tuesday, as hopes that US President Donald Trump will ease tariffs coincided with expectations of cooling inflation in Australia. The S&P/ASX 200 Index rose 0.9%, or 73.5 points, to 8070.6 – its highest level in eight weeks and its fourth consecutive day of gains. Ten of 11 sectors were in the green, led by energy stocks.
The market was led by the Energy (+2.5%) and Resources (+1.7%) sectors, but the Information Technology sector (+1.5%) and the interest-rate sensitive Real Estate sector (+1.1%) also performed well. In relation to Energy, a better-than-expected quarterly update from Boss Energy (+14.3%) today drove the entire ASX uranium sector – Deep Yellow rose 10.3% and Paladin Energy 9.7%, extending the latter’s five-day advance to 42.8%. Additionally, the uranium price is rallying again. Minerals Resources (+13.1%) also released a better-than-expected quarterly report. The price reaction was likely a combination of buying the dip and, probably, short covering. Only the Gold sub-sector was in red, albeit only marginally.
Hopes for a positive inflation reading in Australia today also buoyed sentiment. The market consensus is for inflation to tick up 0.8% in the three months to March 31, pushing the annual pace from 2.4% to 2.3%. More crucial is the core inflation measure, which strips out the most
extreme moves. That is expected to increase 0.7%, taking the annual inflation rate watched by the RBA from 3.2% to 2.9%.
Meanwhile, the AUD climbed to a fresh 2025 peak as Trump’s trade policies weighed on the USD. The Aussie hit US64.49¢, the highest since December 9. It has gained nearly 4% this year. Net shorts on the AUD have hit their lowest level this year. This is in sharp contrast to the USD, in which investors, including hedge funds, have increased net short positioning to its highest level since 2024.
