1. Moving the market

Nervousness and uncertainty dominated Wall Street early on, with equities selling off ahead of Trump’s tariff rollout on April 2nd.

However, bullish sentiment returned by midday, allowing the major indexes to recover and close in the green, except for the Nasdaq, which remained slightly in the red.

The tariff announcement included reciprocal duties targeting countries that impose tariffs on US imports, as well as a broad 25% levy on all cars not made in the US. Weekend news did little to calm concerns; in fact, the WSJ reported that Trump had urged his advisors to adopt a more aggressive stance.

The tech sector was hit hardest early on, with major players like Nvidia, Meta, and Tesla retreating and failing to recapture last year’s bullish trend. Nvidia is down about 31% from its 52-week high.

For the quarter, US stocks experienced their worst performance compared to the rest of the world in 23 years, as noted by ZH. The Nasdaq was the biggest loser in March and Q1, tumbling over 11%, marking its worst start to a year since 2022.

Consequently, the Mega-cap sector has been down for six consecutive weeks, the longest stretch since the 2022 sell-off. The stagflation scenario was confirmed during Q1, with disappointing growth and surprising inflation.

Bond yields were lower for the quarter but reversed slightly in March. Rate-cut expectations fluctuated, ending with an expectation of three cuts. The dollar suffered its biggest decline, while Bitcoin fell below its 200-day moving average but remained above pre-election levels.

Gold was the standout performer, surging over 18% in Q1, its best start since 1986. Today, gold raced above $3,150, setting a record.

1. Moving the market

The markets opened in the red, but early positive sentiment helped the major indexes recover and cross into positive territory.

However, this rebound was short-lived, and the indexes ultimately reversed to end with moderate losses.

Traders were focused on Trump’s latest 25% tariff on foreign automakers, which led to declines in U.S. carmakers: GM fell over 7%, Stellantis dropped 1%, and Ford dipped nearly 4%.

Offsetting this news were hints from Trump that the April 2nd levies would be “very lenient” and that he might reduce tariffs on China to facilitate a deal with ByteDance’s TikTok.

Conversely, he threatened to impose “far larger” tariffs on the European Union and Canada if they collaborate to combat trade tariffs.

These developments did little to calm the markets, suggesting that any rebound in stocks may be short-lived, as seen in recent times. Volatility is likely to persist until policy uncertainty is resolved.

Bond yields were mixed, the dollar dipped, and Bitcoin saw volatility but found support at $86k.

Gold was the standout performer, hitting a new record high just shy of $3,060, boosting its quarterly advance to over 16%—its highest quarterly gain since 1986, as noted by ZH.

Will we see gold break $3,100 in April?

1. Moving the market

The S&P 500 and the tech sector faced early pressure and retreated as traders grappled with uncertainties surrounding tariff threats and negative news about AI and data centers.

Inflation and concerns about a potential economic slowdown, with the April 2nd tariff implementation looming, were dampening bullish sentiment.

Although Trump indicated that the tariffs might be more “lenient than reciprocal,” softening his stance from earlier reports, he still left his options open.

However, recent data points over the past week have shown that housing starts, building permits, industrial production, capacity utilization, and new home sales were all in line with or better than expectations, casting doubt on some of the negative impacts of the tariffs.

The market took another hit in afternoon trading as Trump scheduled a press conference after the close today to announce auto tariffs. While no details were available, the announcement was enough to erase any bullish sentiment, with all major indexes sinking into the red.

The most shorted stocks reversed and gave back this week’s advances, bond yields inched higher, as did the dollar. Gold remained unaffected, treading water, and closing unchanged. Bitcoin followed the tech sector lower but found support at the $86k level.

Nvidia plunged almost 6%, bringing back historical comparisons to Cisco Systems and raising the question: Will history repeat itself?