U.S. Stock Market Starts the Week with Optimism Amid Tariff Relief and Fed Support Signals
Market News 15 APR
The week kicked off with positive momentum in the stock markets as the S&P 500 closed 0.8% higher, despite some intraday volatility. After an initial surge of +1.8%, the index briefly turned negative but rebounded on reassuring statements from the White House and the Federal Reserve.
At the center of investor attention were recent remarks by President Donald Trump. The temporary suspension of tariffs on consumer electronics and discussions about delaying auto import duties served as catalysts for gains in tech and auto sectors.
Chipmakers such as Western Digital, Seagate, Micron, Texas Instruments, and AMD posted gains ranging from 1% to over 4%. Computer manufacturers and retailers including Dell, HP, and Best Buy also saw their shares rise following the tariff reprieve.
The auto sector reacted strongly, with Stellantis jumping more than 6%, and General Motors and Ford climbing over 4%. This came as Trump indicated possible temporary exemptions for imported cars and parts to give companies time to shift production to the U.S.
Treasury Yields Fall, Fed Signals Possible Rate Cuts
The yield on 10-year Treasury bonds dropped to 4.374%, providing support for equities. Fed Governor Christopher Waller suggested the central bank could consider rate cuts in the second half of 2025 if the inflationary impact of tariffs proves temporary—giving investors further reason for optimism.
Tensions in international trade policy have somewhat eased. The EU delayed imposing 25% tariffs on U.S. goods, and despite China's retaliatory tariff hikes, it is awaiting further moves from Washington.
Nevertheless, the dollar suffered, hitting a three-year low. A growing lack of confidence in the dollar’s reserve currency status—fueled by its use as a trade weapon—pushed gold prices to historic highs.
Key Economic Data and Powell Speech Ahead
Markets are now focused on Wednesday, which brings key U.S. economic reports including retail sales and industrial production for March. Also on the agenda is Fed Chair Jerome Powell’s speech at the Economic Club of Chicago, which could offer further insight into future monetary policy.
Earnings season kicked off with reports from major U.S. banks. Consensus forecasts call for a 6.7% year-over-year increase in Q1 profits for S&P 500 companies—down from the 11.1% estimate in November. The full-year 2025 outlook has also been revised downward, from 12.5% growth to 9.4%.
Notable Movers: Leaders and Laggards
Palantir Technologies surged 6% after securing a NATO contract for its AI-powered defense system. Apple rose 3.5% after announcing it would use on-device user data to improve its AI capabilities. PDD Holdings jumped more than 4%, benefiting from reduced U.S. tariffs that support Chinese exports.
On the downside, Meta Platforms fell over 2% amid a new antitrust investigation in the U.S., while Humana lost 3% as healthcare stocks lagged. Hotel chains Hyatt and Hilton also declined, impacted by ratings downgrades.
Lowe’s announced the $1.325 billion acquisition of Artisan Design Group to strengthen its presence in the interior finishes market.
Intel is reportedly close to selling its Altera programmable chip unit.
Pfizer ended development of its obesity drug danuglipron, opening up the field to rivals like Viking Therapeutics and Structure Therapeutics.
Webull made a spectacular market debut, soaring 393% following a SPAC merger.