Investors ditched worries, boosting ETFs like VanEck SMH (+13%) on chip stock rally, Virtus BBC (+7%) on biotech hope, Simplify TESL (+31%) on Musk's focus, Invesco SPHB (+11.5%) on risk appetite, iShares IBIT (+9.2%) on crypto optimism. Market sentiment received boost from easing US-China trade tensions and news of no Fed Chair firing. S&P 500 recovered 80% of its post-April 2 sell-off, but warning signs remain with slowing private sector growth, declining consumer sentiment, and rising inflation expectations. ServiceNow (+20%) and Northrop Grumman (-15%) had divergent earnings, while Tesla (+31%) surged on Musk's promise to focus on making EVs. This week's action will be crucial.
The ECB official expects inflation to hover around the central bank’s target but cautioned that global trade disruptions are adding uncertainty to the outlook.
Bessent also pointed toward the strengthening of the Euro against the dollar since the tariff wars commenced and said that European countries are likely to be in panic given the strengthening of their currency.
Trump also told Time Magazine that Chinese President Xi Jinping had called him to strike a tariff deal, but did not specify when the call was made or what the two leaders discussed.
The order will expedite the extraction of minerals such as nickel, copper, and rare earth elements from the ocean floor — resources crucial to the production of electric vehicle batteries, wind turbines, and other clean-energy technologies.
U.S. equity markets are coming off a three-day rally, but escalating trade tensions and increasing uncertainty between the US and China have capped momentum.
He stressed that investors are increasingly wary of U.S. Treasury bonds, traditionally viewed as safe-haven assets, due to the unpredictability introduced by the trade war.
National Association of Realtors Chief Economist Lawrence Yun said that home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates.
The advance number for seasonally adjusted insured unemployment during the week ending April 12 fell to 1.84 million compared to 1.88 million in the previous week.
Hammack told CNBC that the Fed can afford to be patient with rate changes and said it will act swiftly if needed, but current data does not yet warrant a move.
Evercore’s Krishna Guha warned that Federal Reserve Chair Jerome Powell remains a convenient scapegoat for any economic fallout tied to President Donald Trump’s trade war.
In a severe downside scenario, global public debt could hit 117% of GDP by 2027, surpassing World War II levels, the IMF said in its latest Fiscal Monitor report.
Deputy Treasury Secretary Michael Faulkender was chosen as the acting commissioner for the IRS last week, replacing Gary Shapley who was named to the role only three days ago.
Villeroy, the chief of France's central bank, said Trump's trade policies dampened economic growth, including for the U.S., and threatened to undermine financial stability.
