Stocks Soar on Signs US Trade Policies Will be More Targeted

Stocks Soar on Signs US Trade Policies Will be More Targeted

  • 24.03.2025 23:21
  • theglobeandmail.com
  • Keywords: Stock Market Rally, Tariffs, Mergers and Acquisitions

US stocks surged as President Trump’s announcement of more targeted reciprocal tariffs calmed fears about global trade impacts. Stocks reached two-week highs, driven by gains in tech and chip sectors, while mixed economic data and geopolitical tensions weighed on sentiment.

SMCI ServicesJHXsentiment_neutralDNBsentiment_satisfiedAMDsentiment_satisfiedARMsentiment_satisfiedONsentiment_satisfiedMCHPsentiment_satisfiedADIsentiment_satisfiedMRVLsentiment_satisfiedKLACsentiment_satisfiedTXNsentiment_satisfiedCOINsentiment_satisfiedSTRKsentiment_satisfiedRIOTsentiment_satisfiedMARAsentiment_satisfiedCOHRsentiment_satisfiedFDXsentiment_satisfiedPINSsentiment_satisfiedHRLsentiment_dissatisfiedBF-Bsentiment_dissatisfiedKHCsentiment_dissatisfiedSMCIsentiment_dissatisfiedLMTsentiment_dissatisfied

Estimated market influence

S&P 500 Index

Positivesentiment_satisfied
Analyst rating: N/A

The S&P 500 Index closed up +1.76%, contributing to the overall market rally.

Dow Jones Industrials Index

Positivesentiment_satisfied
Analyst rating: N/A

The Dow Jones Industrials Index closed up +1.42%, contributing to the overall market rally.

Nasdaq 100 Index

Positivesentiment_satisfied
Analyst rating: N/A

The Nasdaq 100 Index closed up +2.16%, contributing to the overall market rally.

James Hardie Industries

James Hardie Industries

Neutralsentiment_neutral
Analyst rating: Buy

Agreed to acquire Azek Co for $8.75 billion in cash and stock, leading to a merger.

Azek Co

Positivesentiment_satisfied
Analyst rating: N/A

Acquired by James Hardie Industries for $8.75 billion, resulting in significant gains.

Clearlake Capital Group

Neutralsentiment_neutral
Analyst rating: N/A

Agreed to acquire Dun & Bradstreet Holdings for about $4.1 billion, leading to a merger.

Dun & Bradstreet Holdings

Dun & Bradstreet Holdings

Positivesentiment_satisfied
Analyst rating: N/A

To be acquired by Clearlake Capital Group for about $4.1 billion, resulting in gains.

NXP Semiconductors NV

Positivesentiment_satisfied
Analyst rating: N/A

Closed up more than +5%, contributing to the chip stocks rally.

Advanced Micro Devices

Advanced Micro Devices

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +7%, contributing to the chip stocks rally.

ARM Holdings Plc

ARM Holdings Plc

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +4%, contributing to the chip stocks rally.

ON Semiconductor

ON Semiconductor

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +4%, contributing to the chip stocks rally.

Microchip Technology

Microchip Technology

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +3%, contributing to the chip stocks rally.

Analog Devices

Analog Devices

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +3%, contributing to the chip stocks rally.

Marvell Technology

Marvell Technology

Positivesentiment_satisfied
Analyst rating: Strong buy

Closed up more than +3%, contributing to the chip stocks rally.

KLA Corp

KLA Corp

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +3%, contributing to the chip stocks rally.

Texas Instruments

Texas Instruments

Positivesentiment_satisfied
Analyst rating: Neutral

Closed up more than +3%, contributing to the chip stocks rally.

Coinbase Global

Coinbase Global

Positivesentiment_satisfied
Analyst rating: Buy

Surged due to Bitcoin's price jump, closing up more than +6%.

MicroStrategy

MicroStrategy

Positivesentiment_satisfied
Analyst rating:

Surged due to Bitcoin's price jump, closing up more than +6%.

Riot Platforms

Riot Platforms

Positivesentiment_satisfied
Analyst rating: N/A

Surged due to Bitcoin's price jump, closing up more than +6%.

MARA Holdings

MARA Holdings

Positivesentiment_satisfied
Analyst rating: N/A

Surged due to Bitcoin's price jump, closing up more than +6%.

Coherent Corp

Coherent Corp

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +12% after Raymond James upgraded the stock.

Viasat Inc.

Positivesentiment_satisfied
Analyst rating: N/A

Closed up more than +14% after Deutsche Bank upgraded the stock.

FedEx

FedEx

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +5% after Jeffries upgraded the stock.

Pinterest

Pinterest

Positivesentiment_satisfied
Analyst rating: Buy

Closed up more than +4% after Guggenheim Securities upgraded the stock.

Hormel Foods

Hormel Foods

Negativesentiment_dissatisfied
Analyst rating: Neutral

Closed down more than -2%, leading losers in the S&P 500 due to market rally pressure on defensive stocks.

Brown-Forman

Negativesentiment_dissatisfied
Analyst rating: N/A

Closed down more than -2%, affected by market rally pressure on defensive stocks.

Kraft Heinz

Kraft Heinz

Negativesentiment_dissatisfied
Analyst rating: Neutral

Closed down more than -1%, impacted by market rally pressure on defensive stocks.

Super Micro Computer

Super Micro Computer

Negativesentiment_dissatisfied
Analyst rating: Neutral

Closed down more than -1% after Goldman Sachs downgrade.

Lockheed Martin

Lockheed Martin

Negativesentiment_dissatisfied
Analyst rating: Buy

Closed down more than -1%, following a government contract loss to Boeing.

Context

Analysis of Market Developments and Business Insights

Market Performance

  • S&P 500 Index closed up +1.76%
  • Dow Jones Industrials Index closed up +1.42%
  • Nasdaq 100 Index closed up +2.16%
  • June E-mini S&P futures: +1.74%
  • June E-mini Nasdaq futures: +2.07%

Trade Policy Developments

  • US tariffs on steel and aluminum will be more targeted, with some countries exempted.
  • President Trump’s "Liberation Day" tariff announcement (April 2) expected to focus on specific sectors rather than global tariffs.
  • Market fears alleviated due to narrower scope of tariffs.

Economic Data

  • Feb Chicago Fed national activity index: Rose to 0.18 (vs. expectation of -0.17).
  • Mar S&P Global manufacturing PMI: Fell to 49.8 (vs. expectation of 51.7).
  • Mar S&P Global services PMI: Surged to 54.3 (vs. expectation of 51.0).

Mergers & Acquisitions

  • James Hardie Industries agreed to acquire Azek Co for $8.75 billion in cash and stock.
  • Clearlake Capital Group agreed to acquire Dun & Bradstreet Holdings for approximately $4.1 billion.

Geopolitical Risks

  • Heightened tensions in the Middle East:
    • Israel-Hamas conflict escalation.
    • US strikes on Yemen’s Houthi rebels.

Interest Rates

  • 10-year T-note yield: Rose to 4.329% (up 8.3 bp).
  • 10-year breakeven inflation rate: Reached a 2-1/2 week high of 2.357%.

US Stock Movers

  • Magnificent Seven stocks: Tesla (+11%), Amazon (+3.4%), Meta (+3.2%).
  • Chip stocks: AMD (+7.5%), NXP Semiconductors (+5.5%).
  • Cryptocurrency-exposed stocks: Coinbase Global (+6.8%).

Key Earnings Reports (March 25, 2025)

  • Companies: Core & Main Inc, Crown Holdings Inc, GameStop Corp, McCormick & Co Inc/MD.

This analysis highlights the significant impact of trade policy clarity and M&A activity on market sentiment, alongside mixed economic indicators and geopolitical tensions shaping investor behavior.