U.S. Stocks Rally on China Trade Optimism and Strong Economic Data
Market news 24 apr
In midweek trading, U.S. equity markets staged a solid rebound, sending the major indices into positive territory. The S&P 500 gained 1.67 %, the Dow Jones Industrial Average rose 1.07 %, and the Nasdaq 100 climbed 2.28 %. Futures markets echoed the optimism: E-mini S&P futures added 1.70 %, while E-mini Nasdaq futures advanced 2.35 %.
What Drives the Market?
The main catalyst came from the White House: President Trump said he intends to be “very friendly” with China in any negotiations and would lower tariffs if a mutually beneficial trade deal is reached. At the same time, his decision not to fire Federal Reserve Chair Jerome Powell bolstered the dollar and eased fears of foreign investors exiting dollar-denominated assets. However, hopes for a swift U.S.–China trade agreement were slightly cooled by Treasury Secretary Bessent’s comments clarifying that the U.S. had not offered to unilaterally roll back tariffs.
Macroeconomic Data: Mixed Background
Several April reports surprised on the upside, supporting equities:
The S&P manufacturing PMI rose to 50.7, beating forecasts of 49.0.
New-home sales in March jumped 7.4 % to a six-month high of 724,000 units.
Mortgage applications fell 12.7 % in the week ending April 18, and the average 30-year fixed rate climbed to 6.90 %.
The Fed’s Beige Book noted that economic activity from mid-March through April 14 was largely unchanged and price pressures remained moderate.
Cryptocurrencies on the Rise
The dollar’s slide to a three-year low spurred a more than 2 % rally in Bitcoin, taking it to a seven-week high. Growing trade tensions have also driven demand for digital assets as an alternative safe-haven.
What Awaits Investors Ahead?
Attention will stay on Q1 earnings season—Bloomberg Intelligence consensus projects 6.7 % year-over-year profit growth for S&P 500 companies, down from 11.1 % expected in November. Key data releases in the coming days include:
Thursday: March non-defense capital goods orders (ex-aircraft) and existing home sales.
Friday: University of Michigan April consumer sentiment (revised).
Global Context
Overseas markets closed mixed: Euro Stoxx 50 rose 2.77 %, Nikkei 225 gained 1.89 %, while Shanghai Composite slipped 0.10 %. The euro-zone manufacturing PMI unexpectedly ticked up to 48.7 but remains below the 50 expansion threshold.
Bond Market
U.S. 10-year Treasury yields, after an initial dip, rose to 4.381 % on stronger economic data and higher inflation expectations. Demand for $70 billion of five-year notes was robust, with a bid-to-cover ratio above 2.4. In Europe, 10-year German bund yields rose 5.4 bps to 2.497 %, and U.K. gilts added 0.7 bps to 4.552 %.
Leaders in Growth and Laggards
Among the “Magnificent Seven,” Tesla surged 5 %, Meta and Amazon each climbed 4 %, Nvidia added 3 %, and Apple and Alphabet each rose over 2 %. Standouts included Amphenol (+8 %) and Boeing (+6 %) on strong quarterly results. On the downside, Lennox and Baker Hughes dropped over 6 % after disappointing earnings, while Bristol-Myers Squibb and Chubb fell more than 2 % on clinical and underwriting setbacks, respectively.