| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 40,368.96 | -155.83 | -0.38% |
| S&P 500 | 5,396.63 | -9.34 | -0.17% |
| Nasdaq | 16,823.17 | -8.32 | -0.05% |
| VIX | 30.12 | -0.77 | -2.49% |
| Gold | 3,262.10 | 21.7 | 0.67% |
| Oil | 61.36 | 0.03 | 0.05% |
US MARKET
Signs of market calm but devoid of conviction, with the equities markets effectively flat, and trading volumes very low as per yesterday. However, the relief in bonds persisted today, the 10-year was down 4 ps but the 3-year was down 10 bps, and the USD snapped a 5 day downward move. Banks continued to report strong earnings, underscored by an equity-trading boon and still-healthy consumers and businesses, but it wasn’t even to drive the markets into the positive.
At the close, the S&P 500 Index was down 0.2%, the Nasdaq 100 effectively unchanged, and the Dow Jones Industrial Average down 0.4%, the Russell 2000 Index up 0.2%.
Trump called on China to reach out to him to kick off negotiations, indicating there is no end in sight to fight that has seen both sides raise trade barriers to staggering levels. The Asian nation ordered airlines not to take further deliveries of Boeing Co. jets. Meantime, the European Union and US made scant progress bridging trade differences.
Interesting, a BofA Global Research survey of fund managers released on Tuesday highlighted global investors have slashed their holdings of U.S. stocks by a record amount in the past two months, a trend that is likely to continue given a record number of managers say they plan to keep cutting their exposure. Respondents to BofA’s monthly survey of fund managers were a net 36% underweight U.S. equities, the most in nearly two years, a number that has plunged by 53 percentage points since February, the biggest such fall on their records. BofA polled 164 investors with $386 billion of assets under management. There were further signs of nervousness in the survey, particularly about U.S assets. A net 42% of investors said they expected a global recession, the most since June 2023 and the fourth-highest level in the past 20 years.
The chart below certainly suggests there is plenty more selling capacity, which admittedly is to March 2025 end. The AAII Asset Allocation Survey is a monthly survey conducted by the American Association of Individual Investors (AAII). The results is published on the first day of each month, reflecting the asset allocation of individual investors last month.
AUSTRALIAN EQUITY MARKET WRAP
The S&P/ASX 200 Index rose 0.17% to close at 7,762 on Tuesday, extending gains from the previous session as firmer underlying prices lifted commodity stocks on the resource-heavy bourse. Australian equities also tracked overnight gains on Wall Street, where investor sentiment was lifted by President Donald Trump’s decision to exempt key electronic products from new reciprocal tariffs.
Reports suggesting a potential pause on his 25% auto import tariffs further supported risk appetite. However, optimism was tempered by news that the US Commerce Department has launched a national security investigation into semiconductor and pharmaceutical imports, adding a note of caution to global markets. Mining stocks led the rally in Sydney, with notable performances from Evolution Mining (+4.3%), Lynas Rare Earth (+3.1%), and Fortescue Metals (+0.8%). In contrast, financial, consumer, and technology sectors were mixed and lacked clear direction.