| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 41989.96 | -11.8 | -0.03% |
| S&P 500 | 5633.07 | 21.22 | 0.38% |
| Nasdaq | 17449.89 | 150.6 | 0.87% |
| VIX | 21.77 | -0.51 | -2.29% |
| Gold | 3145 | -1 | -0.03% |
| Oil | 71.22 | 0.02 | 0.06% |
US MARKET
Another day and another day of significant intra-day swings. The S&P 500 wiped out a 1% slide that was triggered by weak manufacturing and jobs data. A gauge of the “Magnificent Seven” megacaps halted a four-day selloff. All seven megacaps gained, with Tesla Inc. up 3.6%. By the close, the S&P 500 rose 0.4%. The Nasdaq 100 added 0.8%. The Dow Jones Industrial Average wavered.
Of course, the volatility and as reflected by the recent increase in the VIX, is largely being driven by Trump’s tariffs. As the deadline approaches, it’s not clear how far he’ll go in overturning the current rules-based system of global commerce. The uncertainty has shaken markets, prompted economists to cut their growth forecasts and forced central bankers to factor in the potential inflationary impact of import costs. Three of Wall Street’s most-reliable bulls have acknowledged that they were too optimistic in their estimates for the S&P 500 this year, with strategists at Goldman Sachs Group Inc., Societe Generale and Yardeni Research lowering their year-end targets for the benchmark. It was announced overnight that Trump’s tariffs will take immediate effect after they are announced Wednesday US time.
Overnight the Institute for Supply Management’s manufacturing index declined 1.3 points last month to 49, according to data released Tuesday. Readings below 50 indicate contraction and the figure was slightly weaker than the median projection of economists. The contraction in the March survey is the first for this year. Additionally, prices accelerated sharply for a second month as the drumbeat of higher tariffs reverberated through the economy.
LOCAL MARKET
The S&P/ASX 200 Index climbed 1.04% to close at 7,925 on Tuesday, recouping losses from the previous session after the RBA kept the cash rate unchanged at 4.1%, as widely expected. The central bank also dropped a reference to being cautious on further easing, signalling a slight dovish shift. Supporting dovish expectations further, data showed that Australian retail sales rose less than expected in February amid softening domestic consumption.
Australian equities also mirrored Wall Street’s overnight rebound as traders awaited further details on US President Donald Trump’s tariff plans ahead of his so-called “Liberation Day.” Heavyweight miners and energy stocks led the market gains, supported by stronger commodity prices. Notable advances came from BHP Group (1.8%), Fortescue (1.8%), and Woodside Energy (1.7%).
Given the overnight performance of the US market, Australian shares are set to open higher though a sustainable rebound is not expected. ASX futures are pointing up 28 points or 0.4% to 8001.