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25.03.2025 11:57 AM
US stocks surged on Monday, with the S&P 500 Index hitting a two-week high, fueled by strong moves in tech stocks and a signal of possible tariff easing from former President Donald Trump.
Investors rushed back into the previously pressured tech sector. Nvidia shares jumped more than 3%, while Advanced Micro Devices shares jumped 7%, which provided an impressive 3% increase in the PHLX semiconductor index. This jump was the most noticeable in recent weeks.
Tesla has seen a nearly 12% gain in a day, the largest since early November. Such an impressive jump was a breath of fresh air after the recent decline. Investor optimism was supported by rumors of a possible reduction in tariffs on the auto giant's products, which helped the shares confidently return to growth territory.
Of the 11 sectors that make up the S&P 500, ten ended the trading session in the green. The absolute favorite of the day was the consumer discretionary sector, adding 4.07%. Tesla was the growth engine, inspiring buyers to make new investments.
The last few weeks have been nervous for the markets: investors were worried about the prospects for inflation and a slowing economy. The cause for concern was Trump's announcement of new tariffs aimed at key US partners - China, Mexico and Canada. These measures caused a chain reaction of uncertainty in the stock market.
Since the local bottom on March 13, the S&P 500 index has already gained about 4%. However, it is still about 6% short of the peak levels recorded on February 19. Investors continue to monitor the global agenda, trying to assess further steps in US trade policy.
Many companies have already begun to factor tariff risks into their forecasts: due to uncertainty, some are revising their revenue expectations. S&P 500 earnings are expected to grow 10.5% in 2025, 3.5 percentage points below expectations at the start of the year, according to LSEG data released on Friday.
US stock indexes started the week with a strong surge. The S&P 500 rose 1.76% to close at 5,767.57. The tech-heavy Nasdaq gained even more, 2.27% to 18,188.59. Even the more conservative Dow Jones posted solid gains, up 1.42% to 42,583.32.
The Russell 2000 index of small-cap companies, which reflects the state of the domestic U.S. economy, added 2.55%, reaching its highest value in the last two weeks. This strengthened investors' confidence that local businesses are gradually adapting to the new conditions.
The CBOE Volatility Index, known on Wall Street as the "fear barometer", fell by 1.8 points, falling to the lowest value in the last month. This suggests that investors have begun to feel more confident amid stabilizing news on tariff policy.
The telecommunications and digital services sector did not remain on the sidelines: the index rose by 2.1%, catching up with a wave of general optimism that has swept the tech market.
Fresh data show that business activity in the U.S. began to grow in March. However, beneath the surface of the positive data, tensions remain: concerns about upcoming import tariffs and likely government spending cuts continue to curb market enthusiasm.
Shares in enterprise analytics and data provider Dun & Bradstreet rose 3% after announcing an upcoming buyout of the company. The new owner will be private equity group Clearlake Capital, and the deal is valued at a solid $7.7 billion. Investors took the news as a positive sign that the M&A market remains active.
Shares in defense giant Lockheed Martin fell more than 1% after a surprise move by analysts at BofA Global Research. The bank revised its outlook on the company from "buy" to "hold," signaling a cooling of enthusiasm for the defense sector.
On the other front, the cryptocurrency space saw rapid growth. Bitcoin's 4% rise boosted crypto-focused stocks. MicroStrategy soared 10%, while Coinbase gained 7%, taking advantage of a new wave of interest in digital assets.
European stock markets opened in the green on Tuesday. The regional STOXX 600 index was up 0.3% by 08:15 GMT, reflecting cautious but confident investor optimism. The gains were led by banks and energy, two pillars particularly sensitive to economic expectations.
Investors eagerly awaited the publication of the key business climate index from the Munich-based Ifo Institute. The forecast was for a rise to 86.7 in March from 85.2 in February, a signal that Europe's largest economy may be moving from stagnation to a cautious recovery.
The US is back at the center of the global trade agenda. President Donald Trump said on Monday that not all previously announced tariffs would come into effect on April 2. Moreover, he admitted that individual countries could be temporarily exempted from the restrictions. This caused a sharp redistribution of capital on the American market - previously weakened stocks began to revive.
While American securities responded to the statement with rotation and growth, European markets generally remained calm. It seems that this time the Old World has chosen a wait-and-see attitude, not rushing to build optimism into quotes.
Business circles are growing concerned about Donald Trump's trade strategy. Experts believe that tough tariff measures could become a brake on economic growth, exacerbate tensions on the global stage and accelerate inflation processes in the United States. These concerns affect both stock indices and demand for defensive assets.
Shares in Switzerland's largest logistics company Kuehne und Nagel fell 2.7% after issuing a disappointing forecast. The company's management warned that its operating profit for the year could be below analysts' expectations, citing ongoing global economic instability, which is putting pressure on demand and supply chains.
At the same time, German lubricants maker Fuchs SE surprised investors. The company's shares rose 5.4%, outperforming the pan-European STOXX 600 index, after publishing better-than-expected financial results. Amid general economic pessimism, the report was a real ray of light for the industry.
Atlanta Federal Reserve Bank President Raphael Bostic said he does not expect quick success in curbing inflation. According to him, the Fed's key interest rate cut in 2025 is likely to be minimal — by only 0.25 percentage points. This was a signal that the regulator is switching to extreme caution.
The key event of the week remains the publication of the consumer expenditure index (PCE), the main inflation benchmark for the Federal Reserve. It is this data, which is expected on Friday, that can determine the next steps of the American central bank. Any deviation from expectations can seriously affect the trajectory of monetary policy.
In March, funds specializing in investments in gold miners are demonstrating unprecedented interest from investors. It is expected that the net capital inflow into this sector will be the highest in the past 12 months. Such a surge in interest is explained by the rapid rise in gold prices, which significantly improves the financial prospects of gold mining companies — from profit growth to an increase in free cash flow.
Gold prices have shown modest gains, supported by a wave of concerns over the unclear outlook for U.S. trade policy. Rising inflation risks and fears of an economic slowdown are causing investors to seek refuge in traditional safe havens.
As of Tuesday morning, the spot price of gold rose 0.1%, reaching $3,015.66 per ounce. U.S. futures followed suit, strengthening to $3,019.70. These figures reflect cautious but steady interest in the precious metal amid global instability.
Amid the volatility of global markets, investors are not just buying bullion and futures — they are actively entering stock instruments related to precious metals producers. Analysts emphasize that the growth in gold mining company profitability may even outpace the metal itself, especially if the high price of gold persists in the long term.
It is not only gold that is in demand. Silver rose 0.3% on Tuesday, reaching $33.10 per ounce. This growth indicates a continuation of a strong trend amid growing demand for industrial metals with investment potential.
Platinum strengthened by 0.2%, reaching $974.65 per ounce. Palladium, used in particular in the auto industry, also added 0.2%, stopping at $953.53. Although their growth is not as rapid as that of gold, interest in them remains due to expectations of a recovery in industrial activity and growth in demand in the electronics and automotive industries.
With the current geopolitical instability, trade risks and tightening fiscal policy in several countries, precious metals remain one of the few islands of confidence in the global financial landscape. Growing interest in gold mining funds and rising prices for silver, platinum and palladium are, in fact, a vote of caution from the markets.
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
