| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41,249.38 | -119.07 | -0.29% |
| S&P 500 | 5,659.91 | -4.03 | -0.07% |
| Nasdaq | 17,928.92 | 0.78 | 0.00% |
| VIX | 20.02 | -1.88 | -8.58% |
| Gold | 3,223.00 | -120.8 | -3.67% |
| Oil | 62.83 | 1.83 | 3.00% |
US MARKET
US stocks roared higher on Monday after the US and China agreed to temporarily slash tariffs, easing fears of a prolonged trade war and possible recession. The S&P 500 jumped 3.2% and the Nasdaq 100 soared 4%, while the Dow Jones jumped almost 3.0%.
Amid a potential reset in inflation expectations, Treasury yields climbed as traders lowered their Fed wagers to just two rate cuts in 2025. The two-year yield climbed 11 bps to around 4%. In the US investment-grade bond market, 16 companies are selling debt, including United Parcel Service Inc. and Caterpillar Inc.
Treasury Secretary Scott Bessent called the weekend negotiations in Switzerland “very productive,” confirming both sides would cut tariffs, the US to 30% and China to 10%, for 90 days.
Consumer discretionary was by far the top performing sector, adding about 5.5% while consumer staples and utilities underperformed. Tech also booked strong gains, namely Apple (6.3%), Nvidia (5.4%), Amazon (8.1%), Meta (7.9%), Alphabet (3.4%), and Tesla (6.7%). On the other hand, pharmaceutical stocks were lower after Trump said he would sign an executive order to cut prescription drug prices. Traders will closely watch inflation data later this week for signs of how the new tariff regime could affect prices.
For big investors shocked into defensive measures at the height of April’s chaos, the swift recovery in markets has been a mixed blessing. Shorting the dollar, going long stock volatility and piling on bets premised on multiple Fed rate cuts were among the most popular trades in mid-April. Each has taken severe lumps. Indeed, their unwinding may be adding fuel to the bounce-back.
Overview of the Australian Market
A rally in energy and mining companies helped the sharemarket inch higher on Monday as investors geared up for a trade deal between China and the US that was announced barely an hour after the market close. The S&P/ASX 200 Index rose 2.3 points, less than 0.1%, to 8233.5 points at the market close, after earlier rising as much as 0.6%. Seven of 11 sectors were in the green, with energy leading the gains.
BHP jumped 2.3%, with news of a jumbo copper discovery from its Argentinian project and the stronger iron ore price helping lift its shares. Going the other way falling gold prices sparked a sell-off in ASX gold stocks. It’s risk on, and gold will struggle while it remains so.
Today, Westpac is set to release its latest consumer confidence survey report with NAB poised to release its latest check on business confidence and conditions this morning too.
Of course, the US and China ended days of speculation over a possible trade deal shortly after the market close, announcing that Beijing would lower tariffs on US imports from 125% to 10% for 90 days, and the US would reduce its rate on Chinese goods from 145% to 30% for the same period. That announcement came out shortly after market close.