European stocks rose amid hopes of easing trade tensions between the US and China. WTI oil fell by 1.54% to $62.05, while Brent declined by 1.51% to $65.86 due to expectations of increased OPEC+ supply. The Dow Jones gained 0.28%, the S&P 500 inched up 0.06%, and the Nasdaq slipped 0.10%. The STOXX 600 added 0.53%, and the FTSEurofirst 300 rose 0.49%. Japan's Nikkei climbed 0.38% to 35,839.99.
S&P 500 and Dow edge higher after volatile session
US indices S&P 500 and Dow ended Monday's session in positive territory despite heightened market volatility. Investors closely watched for signs of progress in trade tariff talks ahead of a busy week of corporate earnings and key economic data.
Tech sector drags Nasdaq lower
While the broader market showed moderate optimism, the technology sector (.SPLRCT) lagged, weighing on the Nasdaq. At the same time, the dollar strengthened against major world currencies, while gold—traditionally a safe haven in times of uncertainty—rose in value.
Washington hints at progress in tariff talks
US Treasury Secretary Scott Bessent said Monday that key trading partners had offered "very favorable" tariff terms. He noted that China's recent decision to remove some retaliatory tariffs on American goods signals a desire to ease tensions between the world's two largest economies.
Experts caution: uncertainty ahead
According to Mayfield analyst, without a breakthrough in negotiations or strong economic and earnings data, markets may remain range-bound for an indefinite period. "If we don't see significant progress on the trade front or meaningful earnings growth this week, we'll stay stuck in a sideways trend," he said.
Recession risks linger
Despite cautious optimism surrounding trade talks, economists warn that global recession risks remain elevated. Just three months ago, stable global economic growth was expected, but prospects have since worsened amid US protectionist policies.
Tech giants to report quarterly results
This week will be pivotal, with investors focused on Q1 earnings reports from major tech firms including Microsoft (MSFT.O), Apple (AAPL.O), and Amazon.com (AMZN.O). Their results may set the tone for the broader stock market.
Dow and S&P 500 gain, Nasdaq slips
The Dow Jones Industrial Average (.DJI) ended the session up 114.09 points, or 0.28%, at 40,227.59. The S&P 500 (.SPX) rose 3.54 points, or 0.06%, to close at 5,528.75. Meanwhile, the Nasdaq Composite (.IXIC) fell 16.81 points, or 0.10%, to 17,366.13.
European stocks rise on optimism
Hopes for reduced trade tension between the US and China also buoyed European markets. The pan-European STOXX 600 (.STOXX) advanced 0.53%, while the broader FTSEurofirst 300 (.FTEU3) added 10.13 points, or 0.49%.
Global markets move higher
The MSCI World Index (.MIWD00000PUS), which tracks global equities, rose 3.35 points, or 0.41%, to 828.09. Emerging markets also posted strong gains: the MSCI Emerging Markets Index (.MSCIEF) climbed 6.35 points, or 0.58%, to 1,103.45.
Asia follows global rally
Asia-Pacific markets followed suit. The MSCI Asia-Pacific ex-Japan Index (.MIAPJ0000PUS) rose 0.62% to 574.20. Japan's Nikkei (.N225) also posted gains, rising 134.25 points, or 0.38%, to 35,839.99.
Dollar weakens amid trade optimism
The dollar declined at the start of a busy week, as markets looked to progress in US–China trade talks and braced for key economic events. The US Dollar Index, which tracks the greenback against six major peers, fell 0.8% to 98.93.
EUR and GBP gain ground
The euro gained 0.51% to $1.1422. The British pound rose 0.9% to $1.3434, supported by domestic political optimism.
JPY strengthens, MXN retreats
The US dollar fell 1.13% against the Japanese yen to 142.05. Meanwhile, the Mexican peso weakened 0.21% to 19.57 per US dollar. The yen's strength reflects continued demand for safe-haven assets amid global uncertainty.
Canadian dollar rises amid election buzz
The Canadian dollar strengthened 0.26% to C$1.38 per U.S. dollar. Canada heads to the polls Monday, with tariff policy and speculation about possible US annexation dominating the conversation.
Oil prices slide
Oil prices fell as traders weighed the potential for increased OPEC+ supply amid ongoing trade risks. WTI crude declined 1.54% to $62.05 per barrel, while Brent fell 1.51% to $65.86.
Gold back in focus
As the dollar weakened and market uncertainty persisted, demand for safe-haven assets surged. Spot gold rose 0.98% to $3,350.59 per ounce, while US gold futures edged up 0.06% to $3,284.50.
Dollar under pressure as markets reflect on Trump's first 100 days
While US stock futures cautiously rebounded toward early April levels, the US dollar continued to retreat. During President Trump's first 100 days, the greenback recorded one of its steepest monthly declines in years.
Traders are dumping the dollar, fearing that tariff policies will hurt growth, productivity, and investment appeal. The currency's reputation as a "safe haven" is eroding, while Trump's erratic public comments are amplifying market jitters.
Tariff concessions fail to convince investors
Recent news of partial rollbacks on proposed auto tariffs was met with muted market reaction. European and US futures showed modest gains during the Asian session. Investors await clearer signs of genuine de-escalation between the US and China, locked in a heated trade war.
White House meeting sparks business hopes
Still, the concessions to automakers may indicate that Trump is beginning to listen more closely to business leaders. On Wednesday, the White House will host a high-level meeting with over two dozen executives, including leaders from Nvidia, Toyota, SoftBank, and Hyundai. This meeting could be a key signal of the direction US trade policy will take in the near term.
Eurozone prepares to release key economic data
On Tuesday, eurozone consumer confidence figures and inflation data from Spain and Belgium are set for release. These metrics could heavily influence expectations for the European Central Bank's policy.
Corporate reports in focus
Investors will also be watching earnings from major players like HSBC (HSBA.L), Adidas (ADSGn.DE), and Logitech (LOGN.S), all of which are directly affected by tariff policy.
US earnings season heats up
General Motors and Visa kick off a busy week In the US, Monday will bring earnings results from General Motors (GM.N) and Visa (V.N). But all eyes will turn to the end of the week, when tech giants Apple (AAPL.O), Amazon (AMZN.O), and Microsoft (MSFT.O) report. Their performance will likely set the tone for markets in the short term.
