| Market data as of 05:32 am EST. Market data may be delayed depending on provider agreements. President Donald Trump dialed back his criticis |
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| Markets Snapshot | | | | Market data as of 05:32 am EST. | View or Create your Watchlist | | | Market data may be delayed depending on provider agreements. | | |
Five things you need to know | |
- President Donald Trump dialed back his criticism of Russia's Vladimir Putin and instead accused Ukraine of attempting to renegotiate an economic deal with the US.
- European and Asian stocks rose, following yesterday's late-day rally in the US. Gold extended a winning streak as the arrival of US tariffs looms over markets. US stock-index futures are little changed.
- The European Union said it will use a broad range of options to retaliate against the US if Trump follows through on his threat to impose so-called reciprocal tariffs on the bloc this week.
- Commerce Secretary Howard Lutnick has signaled he could withhold promised Chips Act grants as he pushes companies in line for federal semiconductor subsidies to substantially expand their US projects.
- US carmakers are making a last-ditch effort to sway Trump on tariffs set to take effect this week, contending the levies could have catastrophic effects. Ford, GM and Stellantis are lobbying the administration to exclude certain car components.
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| Forget tariffs, government spending cuts and the threat of recession. For investors in technology stocks, it's fears about a bubble brewing in AI that's weighing on the market. The Nasdaq 100 Index just posted its biggest quarterly drop in almost three years, down 8.3%, after a pair of warnings last week fanned anxieties about a possible pullback in the hundreds of billions of dollars flowing into data center infrastructure. The damage is piling up among the stocks that had, until recently, been the market's biggest drivers. Chipmaker Nvidia has seen its shares tumble 28% from a January peak. Microsoft, Amazon.com, Alphabet and Meta have all fallen 20% or more from their own records. "The questions about AI are coming at a time when there's increased uncertainty overall, and at a time when they were priced for perfection, or close to it," said Michael Mullaney, director of global market research at Boston Partners. "That makes them an extremely obvious place for investors who are broadly nervous to take profits." The gloom was palpable in the IPO market, where cloud-computing provider CoreWeave's highly anticipated debut last week turned out to be a dud. To Kim Forrest, chief investment officer at Bokeh Capital Partners, the whole picture shows how nervous investors have become about a slowdown in spending on artificial intelligence. "It would have been a feeding frenzy in June of last year," Forrest said of the CoreWeave debut. "All of this adds up to too many dollars chasing too little computing center demand." —Jeran Wittenstein and Ryan Vlastelica | |
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- Shares in conservative media outlet Newsmax rise 26% in premarket trading, putting the stock on track to extend gains after skyrocketing 735% in its debut session yesterday. The company raised $75 million in its IPO.
- Johnson & Johnson falls 2.7%. A federal judge rejected the drugmaker's third attempt to use bankruptcy to set up a multibillion-dollar trust fund to pay women who claim they got cancer using products allegedly tainted with a toxic substance.
- Cryptocurrency-exposed stocks are rebounding, with Coinbase up 2% and Strategy gaining 3.3%. The stocks were hammered in the first quarter as growing concerns about the US economy weighed on digital assets — with Coinbase falling 31%, its biggest quarterly drop since FTX collapsed near the end of 2022.
- PVH jumps 16% after the earnings outlook from the owner of Calvin Klein and Tommy Hilfiger beat the average analyst estimate.
- Shares of Europe's biggest pharmaceutical companies advance after JPMorgan analysts say potential US tariffs are expected to have a "manageable impact" on the sector. Novo Nordisk is gaining 2.4% in Copenhagen and AstraZeneca climbs 1.8% in London. —Subrat Patnaik
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| European defense stocks dominated a historic quarter of outperformance for the region's equities. And some investors are still trying to increase their positions. Armored-vehicle producer Rheinmetall and Thyssenkrupp — which has a submarine business — both saw their share prices double in the first quarter, the only two members of the benchmark Stoxx Europe 600 Index to do so. The next six best performers were all companies that stand to benefit from a surge in defense spending by European nations amid US threats to walk back its security commitment to the continent. "It's a huge pocket of growth going forward, and where I can I'm fully invested," said Vera Diehl, a portfolio manager at Union Investment Privatfonds, regarding defense. "That is the future in terms of earnings growth, that's where we'll see it." The defense rally played a major role in Europe's outperformance. In dollar terms, the Stoxx 600 returned 11%, its best ever quarter versus the S&P 500, which lost 4.3% including dividends. Some strategists are growing skeptical the rally in Europe has much farther to run: Goldman's Sharon Bell cut her target for the Stoxx 600 over the next three months to 510, compared with 560 previously. The new target implies a drop of 4.5% from yesterday's close. —Isolde MacDonogh | |
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| The Trump administration's mixed messaging on what new tariffs will be unveiled tomorrow and how they'll be announced has got equities traders flustered as they try to position around the biggest risk confronting the market in years. "The best way to summarize this trading environment is frustration and fatigue," said Joe Gilbert, portfolio manager at Integrity Asset Management. "We don't really have a clear playbook on how to proceed." Stocks swung wildly yesterday, with the S&P 500 Index falling as much as 1.7% early on before clawing that back to close up 0.6% for the session. Still, the index notched its worst month and worst quarter since 2022, as investors brace for tariffs. Exactly what they will look like remains a mystery. The president has promised levies on all US trading partners, floated some breaks on certain products or countries, and mulled aiding some domestic industries. (Click here for our Big Take, which explains that his tariffs are expected to cover a broader swath of trade than the infamous 1930 Smoot-Hawley duties that have long served as a cautionary tale about protectionism.) The setup is confounding Wall Street, forcing many traders to ditch positions, sell risk for the relative security of sectors that historically perform well in a recession, or flee stocks altogether. "We've gone from a mindset of focusing on greed and how much money can I make to a mindset of fear and how much money can I lose,'' said Carley Garner, senior strategist and founder of DeCarley Trading. "And it's definitely been an emotional change for traders." —Carmen Reinicke and Natalia Kniazhevich | |
Word from Wall Street | | "Diversification is your friend here. The last two years, diversification had a negative risk premium. It is now coming back that diversification actually in portfolios can be a quite useful attribute to have. And I think that stays in place for the next several months." | | Salman Ahmed Global head of macro and strategic asset allocation at Fidelity International | | |
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