US inflation cools, Saudi invests $600B, tech stocks surge, while global markets stabilize amid easing trade tensions.
U.S. stocks steady post 20% S&P 500 rally; trade truce, cooling inflation, AI deals, and Saudi investments boost markets
United States: Trade Truce, Inflation, and Market Rebound
U.S. markets are holding steady after a sharp rebound. The S&P 500 has surged 20% in just 36 days since its April 7 low, nearly matching historical recovery speeds seen in 2020 (16 days) and 2009 (18 days). The index is now within 4.2% of its all-time high set in February. Nasdaq gained 0.5%, while the Dow Jones Industrial Average rose 0.1% (52 points). Treasury yields edged up, with the 10-year yield rising to 4.49% from 4.47%.
Inflation data showed a slight cooling, with April’s retail sales expected to slow to 0.2% from 1.4% in March. Wholesale inflation figures are due soon, anticipated to reflect easing pressures. Despite tariff uncertainties, more than 90% of S&P 500 companies reported earnings, with most exceeding expectations, though Q2 growth forecasts were slashed by half. American Eagle fell 6.1% after pulling its guidance, citing macroeconomic uncertainty.
Corporate highlights included Advanced Micro Devices announcing a $6 billion buyback, boosting its stock by 6%, and Super Micro Computer rising 12.7% after a Saudi partnership. Conversely, Nucor shut some operations due to a cybersecurity breach, and Cboe Global Markets was downgraded by Morgan Stanley.
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Europe: Modest Gains, Trade Deals, and Currency Moves
European markets were mixed. The Stoxx Europe 600 declined 0.3%, while Germany’s 10-year bond yield held steady at 2.67%. The British pound remained flat at $1.3315, while the euro gained 0.3% to $1.1216. The UK’s trade focus is shifting from the U.S. to deeper cooperation with the European Union, with talks expected to accelerate after the upcoming UK-EU summit.
Novo Nordisk inked a deal with Septerna worth up to $2.2 billion to develop oral obesity treatments. Roche warned it may reconsider U.S. investments if drug price cuts proceed.
China & Asia: Manufacturing, AI, and Trade
China’s tech giants are regaining momentum. Tencent reported its fastest revenue growth in three years, while Alibaba upgraded its video-generating AI model twice in a month, intensifying competition in AI. Tesla will begin shipping components from China to the U.S. for Cybercab and Semi trucks, following a truce in U.S.-China tariffs.
Japan’s yen strengthened by 1% to 146.00 per dollar. Asian stock indices saw moderate gains as trade war tensions eased.
Middle East: Massive U.S. Investments and AI Push
Saudi Arabia committed $600 billion in U.S. investments during President Trump’s Gulf visit. Nvidia will supply hundreds of thousands of AI chips to Saudi Arabia, while AMD announced a $10 billion AI collaboration with Humain, a Saudi-backed startup. Lucid Group advocated for tariffs on imported EVs to bolster domestic production.
Boeing surged after securing an aircraft order from Qatar Airways, amidst a slew of U.S.-Gulf business deals.
Oil, Gold, and Commodities
WTI crude dipped 0.3% to $63.47 per barrel amid cautious optimism on global trade. Gold prices dropped 1.8% to $3,191.80 an ounce, reflecting reduced investor demand for safe-haven assets as risk appetite improves.
Currencies, Cryptocurrencies, and Global Markets
The Bloomberg Dollar Spot Index fell 0.3%, mirroring a softer dollar on expectations of global currency adjustments tied to trade deals. Bitcoin slipped 0.7% to $103,901.25, while Ether declined 3.2% to $2,604.78. The MSCI World Index remained flat, indicating global markets are stabilizing after recent volatility.
Despite lingering uncertainties, Wall Street’s Magnificent 7 megacaps continue to lead. Nvidia shares rose 18% recently, and Tesla rejoined the $1 trillion valuation club. The Roundhill Magnificent 7 ETF gained 11% since April 2, outperforming the S&P 500’s 4.5% and the equal-weight S&P’s 1% rise.
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