On Monday, global markets were largely driven by uncertainty ahead of U.S. President Donald Trump’s upcoming tariff announcements, scheduled for April 2. Despite initial declines in Asia and Europe, Wall Street managed to recover, with investors showing resilience amid tariff fears.
Key Market Indicators
The S&P 500 closed up 0.55%, ending at 5,611.51.
The 10-year U.S. Treasury note yield dropped by 3.3 basis points, settling at 4.222%.
The euro weakened 0.12% against the dollar, dropping to $1.0814.
The U.S. dollar rose 0.1% against the yen, reaching 149.93 yen.
Gold prices climbed by 1.29%, hitting $3,123.92 per ounce.
Wall Street Resilience Amid Tariff Fears
Investor sentiment on Monday was marked by caution, driven by the uncertainty surrounding President Trump’s impending tariff announcements. Following significant drops in Asian and European markets, the same risk-averse sentiment spread to Wall Street. In response, investors flocked to safe-haven assets like Treasuries, while gold prices surpassed the $3,100 mark for the first time.
Despite early losses, the S&P 500 and Dow Jones Industrial Average recovered to finish in positive territory. This rebound occurred even as Treasury yields remained slightly lower, reflecting concerns over the economic impact of a trade war on both the U.S. and global growth.
Goldman Sachs Adjusts Recession Forecast
In response to the current market conditions, Goldman Sachs raised the probability of a U.S. recession in 2025 to 35%. The firm also revised its U.S. GDP growth forecast downward and lowered its year-end target for the S&P 500. This makes Goldman Sachs the most bearish of the major financial firms at the moment. Additionally, market fluctuations were partly attributed to month-end and quarter-end portfolio adjustments, which were not unexpected.
What to Watch for Tomorrow
Market participants will be keeping an eye on several important economic indicators:
Japan’s February unemployment rate
The Reserve Bank of Australia’s monetary policy meeting
U.S. Job Opening and Labor Turnover Survey (JOLTS) for February
U.S. March ISM Manufacturing PMI
For further analysis of today’s market movements, consider reading the following articles:
“As ‘Buy Canadian’ Grows, More U.S. Companies Say Retailers are Shunning Their Products”
“Trump Auto Tariffs Threaten New Supply-Price Shock”
“Gold Sails Above $3,100 as U.S. Tariffs Approach”
“FX Options Volume Surge as Investors Juggle Tariff Risks”
“Markets in Q1: Everything’s Been Trumped!”
Conclusion
As concerns over tariffs and a potential trade war loom, investors are navigating a volatile environment. However, Wall Street has shown resilience, with the S&P 500 managing to climb back into positive territory. The coming days will be crucial as more economic data is released, potentially shaping the outlook for both the U.S. and global economies.
Opinions expressed are those of the author and do not reflect the views of Reuters News.
