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 21:10
  • theglobeandmail.com
  • Keywords: Geopolitical Risks

Stocks climb as easing tariff concerns boost risk sentiment, supported by President Trump's announcement of more targeted reciprocal tariffs, calming market fears about global trade impacts.

SMCI ServicesJHXsentiment_satisfied
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Estimated market influence

James Hardie Industries

James Hardie Industries

Positivesentiment_satisfied
Analyst rating: Buy

Acquired Azek Co for $8.75 billion in cash and stock, which is a significant M&A activity boosting the market.

Clearlake Capital Group

Positivesentiment_satisfied
Analyst rating: N/A

Agreed to acquire Dun & Bradstreet Holdings for about $4.1 billion, contributing to increased M&A activity that supports stocks.

Context

Analysis of Market Developments and Business Insights

Key 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%

Tariff Developments

  • Upcoming US reciprocal tariffs will be more targeted, with some countries exempted and existing tariffs on steel and other metals not cumulative.
  • President Trump's "Liberation Day" tariff announcement on April 2 is expected to focus on specific sectors rather than global tariffs, easing market fears.

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

  • Feb Chicago Fed national activity index: +0.26 (vs. expectation of -0.17).
  • Mar S&P Global manufacturing PMI: -2.9 (weaker than expected 51.7).
  • Mar S&P Global services PMI: +3.3 (stronger than expected no change at 51.0).

Geopolitical Risks

  • Heightened tensions in the Middle East due to:
    • Israel-Hamas conflict resumption.
    • US strikes on Yemen's Houthi rebels.

Interest Rates and Bond Markets

  • 10-year T-note yield: +7.3 bp to 4.319%.
  • 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: Leading gains with Tesla (+8%), Amazon.com (+3%), and Meta Platforms (+3%).
  • Chip stocks: Advanced Micro Devices (+5%) and ARM Holdings Plc (+5%).
  • Cryptocurrency-exposed stocks: Coinbase Global (+4%), MicroStrategy (+4%).
  • Defensive sectors: Under pressure, with Hormel Foods (-1%), Ball Corp (-1%).

Earnings Reports (March 24, 2025)

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

This analysis highlights the significant impact of tariff developments and M&A activity on market sentiment, alongside mixed economic indicators and geopolitical risks. The targeted approach to tariffs has calmed market fears, while increased corporate activity supports stock performance.