U.S. Eases Some Tariffs, Markets Stage Sharp Rebound

Market Overview

Investor sentiment saw a dramatic turnaround within hours after former President Trump announced a suspension of certain tariffs. The Nasdaq surged over 12%, while all seven major U.S. tech giants closed with gains of at least 10%—Tesla soared nearly 23%. Chinese ADRs also posted strong gains. The 10-year U.S. Treasury yield spiked more than 20 basis points intraday before pulling back following Trumps remarks. Crude oil rebounded sharply from its lows, rallying more than 10%, and gold futures spiked over 4% during the session.

Hot Topics to Watch

● 10-Year Treasury Auction Shows Stability, but Domestic Demand Falters

Trump‘s tariff maneuver triggered a “crisis of confidence,” raising questions about the U.S. dollar and Treasuries as traditional safe havens. After a poor showing in yesterday’s 3-year Treasury auction, today's 10-year auction showed relative stability. However, the share of direct bidders—representing U.S. domestic demand—plunged significantly. Foreign buyers remained active, helping push yields lower shortly after the auction concluded.

● FOMC Meeting Minutes Highlight High Uncertainty and Persistent Inflation Risks

Minutes from the most recent Fed policy meeting three weeks ago revealed that officials unanimously viewed economic uncertainty as elevated and inflation risks skewed to the upside. Policymakers expressed willingness to delay action until the outlook becomes clearer. Some members noted a difficult tradeoff may arise if inflation remains persistent while growth and employment weaken. While most supported slowing the balance sheet runoff, several questioned whether the decision was justified. Fed staff downgraded their GDP growth outlook compared to January projections. According to the “New Fed Whisperer,” officials underscored the risk that tariff-driven inflation may be “more persistent” than previously expected.

Key Events to Watch

• 20:30 (GMT+2): U.S. March CPI YoY (NSA), CPI MoM (NSA), Core CPI YoY/MoM

• 22:00 (GMT+2): Kansas City Fed President Schmid speaks on the economy and monetary policy (FOMC voter in 2025)

• 00:00 (GMT+2, Overnight): U.S. EIA releases its Monthly Short-Term Energy Outlook