| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 42,001.76 | 417.86 | 1.00% |
| S&P 500 | 5,611.85 | 30.91 | 0.55% |
| Nasdaq | 17,299.29 | -23.7 | -0.14% |
| VIX | 22.28 | 0.63 | 2.91% |
| Gold | 3,158 | 7.7 | 0.24% |
| Oil | 71.38 | -0.1 | -0.14% |
US MARKET
Volatility gripped stocks ahead of President Donald Trump’s tariff rollout that will set the stage for a shake-up in global trade. Following a slide that topped 1%, the S&P 500 rose about as much before trimming gains. The S&P 500 rose 0.7%. The Nasdaq 100 added 0.7%. The Dow Jones Industrial Average gained 0.6%. Tesla Inc. jumped 5.3% on hopes Elon Musk will refocus on the carmaker as a news report suggested his time as a top adviser to Trump may end soon. Amazon.com Inc. was said to make a bid for TikTok in the US.
Regarding the tariff announcement, market commentators have generally stated that there are 3 key things: 1) the level, 2) the structure (flat tariff or on specific products), 3) to what degree tariffs are applied to consumer related products, and 4) is there exit strategy on the tariffs. The devil will be in the detail and that may not come from today’s announcement. If so while today’s tariff revelations might offer investors some additional clarity it may not offer anything definitive.
Meantime, Corporate America last month announced the fewest stock buybacks, in dollar terms, since the Covid pandemic, an early sign of cash hoarding from worries about economic growth and the impact of a global trade war. Arguably a worrisome sign for investors since buybacks offer a crucial pillar of support for the US stock market, which is already down significantly from February’s all-time highs.
LOCAL MARKET
The S&P/ASX 200 Index rose 0.12% to close at 7,935 on Wednesday, building on the previous session’s gains and tracking a positive lead from Wall Street as investors awaited US President Donald Trump’s reciprocal tariffs announcement.
At a sector level, there were equally big winners and losers. Winners included interest rate sensitives like Property, Financials, Technology, and Consumer Discretionary. On the other hand, economic cyclicals including Resources and Energy suffered due to ongoing fears over the impact of the escalating trade war on the global economy. Uranium stocks in particular got hammered.
Economic data wise, fresh data showed Australian industrial activity contracted further in March, weighed down by uncertainties surrounding US tariffs and domestic politics.
For today, the RBA will release its latest semi-annual Financial Stability Review. Comments on private credit will be closely watched given intense focus on the sector. Additionally, February job vacancies and trade balance data will also be released.