Trump on interest rates; Dow Jones index jumped 230 points, Nasdaq rose, Bitcoin prices increased, gold prices rose, and Wall Street tracked earnings, yields, and global momentum.
US stock futures rose after the drama of Trump's interest rate cut announcement; the Dow Jones and Nasdaq indices rose, Bitcoin value increased, gold hit new record levels, and Wall Street monitored earnings, yields, pharmaceutical companies, and global market shifts.
US stock market today: Dow Jones futures rose by 270 points; Kimberly-Clark lowered its earnings forecast. Wall Street is trying to recover today after a tough start to the week. After a sharp sell-off on Monday, US stock futures are showing a notable rise, with a strong rebound in all major indices. Dow Jones industrial futures jumped over 270 points according to the latest update, while futures for the S&P 500 and Nasdaq indices also show strong gains.
Why did US stock futures rise today?
After a dramatic Monday, when stocks saw a sharp decline due to escalating tensions between President Donald Trump and the Federal Reserve, Wall Street is experiencing a recovery. Futures had fallen earlier in the day, but sentiment quickly shifted, with Dow Jones futures reversing their 80-point drop to rise nearly 350 points at one point.
S&P 500 futures rose by about 50 points, and Nasdaq futures increased by about 180 points. This recovery appears to be driven by bargain hunting and optimism for stabilizing global markets despite geopolitical and economic uncertainty.
Movement of US stock futures
Dow Jones futures:
Initially fell by 80 points, then rose later by nearly 350 points
Latest update: up about 230 points (as of 12:22 PM IST)
S&P 500 futures:
Up about 50 points
Latest update: up about 40 points
Nasdaq futures:
Increase of 180 points
Latest update: up about 120 points
Intense market sell-off (April 21, 2025)
Catalyst: President Donald Trump's pressure on Federal Reserve Chair Jerome Powell to cut interest rates immediately
Result: massive sell-off of stocks
Safe havens like gold have risen to new record levels
The US dollar index briefly fell below 98, but later recovered
US Treasury yields
10-year Treasury yield:
Rose to 4.4%
Kimberly-Clark's earnings forecast
Previous forecast: high single-digit growth
New outlook: stable to positive growth in adjusted operating earnings (on a constant currency basis)
Verizon's subscriber data
Q1 2025 loss: 289,000 monthly phone subscribers
Analyst estimate: loss of 185,500
Increase in Q4 2024: 568,000 subscribers
The same quarter last year: a loss of about 140,000 subscribers
Bitcoin performance
Bounce from the lowest level on April 7, 2025
Increase: ~20%
Highest level since early March
Now decoupled from tech stocks, behaving more like gold
Concerns over drug prices
Trump administration may link US drug prices to global drug prices
Industry insiders consider it the biggest threat to innovation in the US pharmaceutical industry
Yen forecast from Citigroup
Citigroup forecast:
The US may target 100 yen/USD
More realistic: ¥120/USD
The yen rose by 0.7% to 139.89 yen/USD
German bond market
Two-year bond yield: fell by 6 basis points to 1.62% (the lowest since 2022)
Catalyst: resorting to safe havens amid tensions between the Federal Reserve and Trump
Overview of inflation in the UK
Megan Green, Chair of the Bank of England: Trump's tariffs pose a deflationary risk
Inflation in the Eurozone (European Central Bank survey)
2025 forecast: 2.2%
2026 forecast: 2.0%
Long-term inflation forecast: 2.0%
Novo Nordisk stocks
Stock drop: fell 9.8% to 380 kroner
Reason: Success of Eli Lilly's new weight loss pill trial
Novo's market value has dropped by 33% since the start of the year
Danish consumer confidence
April 2025 index: -17
March 2025 index: -15.5
Lowest level since: April 2023
European natural gas prices
Standard futures decline: down 2.5%
Hovering at: ~35 euros per megawatt/hour
Forecast: LNG shipments are good and supply concerns are easing
Overview of the European stock market
Stoxx 600 European index: fell by 0.5% to 0.6%
Stoxx Europe Technology Index: down 1.7%
Healthcare sector: down 2%
UK FTSE 100 index: rose by 0.4%, heading towards a 7-day winning streak (the longest in two years)
Gold price forecasts
JPMorgan: Gold may rise above $4,000 per ounce in the next 12 months
Current price (according to FactSet): $3,424.24 per ounce
Gains:
So far in 2025: +30%
2024: +27%
2023: +13%
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Investment: $50 billion over 5 years
Sectors: Pharmaceuticals, Diagnostics, Manufacturing in the US
Affected states: Kentucky, Indiana, New Jersey, Oregon, California
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What is negatively affecting investor sentiment right now?
Despite today's futures recovery, investors remain cautious due to a number of concerning headlines:
President Trump's pressure on the Federal Reserve: Trump's new attacks on Jerome Powell and his calls for emergency rate cuts have shaken market confidence.
Global trade tensions: Trump's aggressive stance on tariffs toward both allies and competitors creates ripple effects across industries and economies.
Weak earnings from major companies: Companies like Kimberly-Clark and Verizon reported disappointing results, weighing on sector sentiment.
What are the latest news with Kimberly-Clark?
Kimberly-Clark, the consumer goods giant behind brands like Huggies and Kleenex, has lowered its earnings forecast for 2025, citing rising costs due to global trade disruptions.
CEO Mike Hsu stated that the company now expects stable or slightly positive earnings growth, instead of the high growth it forecasted earlier this year. The company attributed this to global supply chain pressures and rising costs related to tariffs and manufacturing.
This cautious outlook led to a drop in the stock price in pre-market trading.
Why did Verizon's stocks drop?
Verizon is also facing pressure today. The telecom giant reported a larger-than-expected decline in its wireless service subscribers, losing 289,000 monthly users in the first quarter.
This represents a sharp decline from the 568,000 subscribers attracted in the last quarter. Verizon cited reduced spending from federal agencies and fierce competition in the mobile communications sector as key reasons for the drop in subscribers.
As the Trump administration cuts jobs and government budgets, telecom companies like Verizon may continue to feel financial strain.
How is Bitcoin performing today?
Bitcoin is experiencing a significant recovery. The largest cryptocurrency has rebounded by about 20% from its lows in April, currently trading at its highest level since early March.
Notably, Bitcoin seems to be separating from tech stocks, acting as a safe haven, similar to gold. Investors anxious from the trade war and the Federal Reserve's unstable policy are increasingly looking to Bitcoin as a hedge.
What are the latest developments regarding Trump's drug pricing plan?
Reports indicate that the Trump administration is considering linking US drug prices to those of other advanced countries, a policy that could significantly lower prices for Americans.
Pharmaceutical companies are concerned, calling this the biggest threat facing the industry right now. Some sources suggest that this move could come through healthcare regulations (Medicare) and health insurance (Medicaid), which would bypass Congress and directly target the pricing power of pharmaceutical companies.
European markets and Asian market response
European stocks opened lower today after the long Easter holiday, following Wall Street on Monday. The Stoxx 600 index fell by 0.5%, with the technology and healthcare sectors leading the losses. Novo Nordisk shares fell by about 10% after a promising weight loss drug trial from Eli Lilly threatened its market share.
Meanwhile, Asian markets held up better than expected, benefiting from improved US futures.
Gold and bond markets: safe havens in play
Gold continues to shine. According to JPMorgan, gold could exceed $4,000 per ounce over the next twelve months, driven by geopolitical tensions and uncertainty regarding central banks. It has already risen by 30% this year.
Bond markets are also seeing activity, with short-term German bonds rising as US Treasury bonds fell amid Trump's criticism of the Federal Reserve.
What are we watching next
Today's futures gains might provide some relief after the sharp drop seen on Monday, but volatility remains high. Investors will continue to monitor:
Earnings season developments
The next step for the Federal Reserve after Trump's criticisms
Geopolitical updates and global trade tensions
Bitcoin and gold as alternative safe-haven assets
Frequently Asked Questions:
Q1. Why are US stock futures rising today?
Because the market is experiencing a recovery after Trump's demand caused
Interest rate gap in a sharp sell-off.
Q2. What is driving Bitcoin prices up right now?
Bitcoin is now following the path of gold, as it rises due to demand as a safe haven.
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