Stocks Climb as Easing Tariff Worries Spark Risk-On in Asset Markets

Stocks Climb as Easing Tariff Worries Spark Risk-On in Asset Markets

  • 24.03.2025 15:23
  • theglobeandmail.com
  • Keywords: High

Stocks climbed as easing tariff concerns and positive economic data boosted markets; mergers and higher corporate earnings also supported gains.

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Context

Analysis of Market Trends and Business Insights

Market Performance

  • S&P 500 Index: +1.58%
  • Dow Jones Industrials Index: +1.23%
  • Nasdaq 100 Index: +1.96%
  • June E-mini S&P futures: +1.62%
  • June E-mini Nasdaq futures: +1.95%

Trade Policy Developments

  • Upcoming US reciprocal tariffs will be more targeted, easing market fears about global trade impacts.
  • President Trump's "Liberation Day" tariff announcement on April 2 is expected to focus on specific sectors rather than wide-ranging global tariffs.

M&A Activity

  • 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 about $4.1 billion.

Economic Indicators

  • US Feb Chicago Fed national activity index: +0.26 (vs. expectation of -0.17).
  • US Mar S&P Global manufacturing PMI: 49.8 (vs. expectation of 51.7).
  • US Mar S&P Global services PMI: 54.3 (vs. expectation of 51.0).

Geopolitical Risks

  • Heightened tensions in the Middle East due to Israeli airstrikes in Gaza and US strikes on Yemen's Houthi rebels.
  • Potential impact on global trade routes, particularly the Red Sea.

Interest Rates

  • 10-year T-note yield: +7.3 bp to 4.319%.
  • 10-year breakeven inflation rate: 2.355% (2-1/2 week high).
  • European bond yields mixed:
    • 10-year German bund yield: +2.1 bp to 2.786%.
    • 10-year UK gilt yield: -0.1 bp to 4.712%.

Stock Movers

  • Magnificent Seven Stocks:

    • Tesla: +8% (leading gainer).
    • Nvidia: +3% (Dow Jones leader).
    • Amazon, Meta Platforms: +3%.
    • Alphabet: +1%, Apple: +0.74%, Microsoft: +0.22%.

  • Chip Stocks:

    • Advanced Micro Devices, ARM Holdings Plc: +5%.
    • ON Semiconductor, Microchip Technology, NXP Semiconductors NV, Analog Devices: +4%.
    • KLA Corp, Lam Research, Texas Instruments: +3%.

  • Cryptocurrency-Exposed Stocks:

    • Coinbase Global, MicroStrategy, MARA Holdings, Riot Platforms: +4% (Bitcoin up +4%).

Defensive Sectors Under Pressure

  • Food and beverage producers and packagers:
    • Hormel Foods, Ball Corp, Kraft Heinz, Brown-Forman: down more than -1%.

Downgrades and Losers

  • Super Micro Computer: -1% (Goldman Sachs downgrade to sell).
  • Lockheed Martin: -1% (Melius Research downgrade to hold).

Earnings Reports (3/24/2025)

  • Companies to watch: Aerovate Therapeutics Inc, AMMO Inc, Enerpac Tool Group Corp, Intuitive Machines Inc, KB Home.