April 23, 2025

Midday Market Roundup for Wednesday, April 23, 2025

Good afternoon. Here are the top four global financial and economic topics shaping markets at midday, Wednesday, April 23, 2025:

1. U.S. Business Activity Slows Sharply Amid Tariff Uncertainty

The global market was significantly affected as U.S. business activity slowed to a 16-month low in April, according to S&P Global’s latest survey. The surge in prices and uncertainty stemming from tariffs have pushed the average effective U.S. tariff rate to historic highs. Reciprocal tariffs from China and other partners have further dampened exports and tourism. The S&P Global Composite PMI Output Index dropped to 51.2 from 53.5 in March, signaling only modest growth. Business confidence has fallen to its lowest level since July 2022, and companies are hesitant to expand their workforce amid rising costs and weaker demand. Economists now estimate U.S. GDP growth slowed significantly in the first quarter, with projections for the second quarter at just 1% annualized3.

2. Global Markets Rebound as Trade Tensions Ease

European stocks rebounded Wednesday after President Trump signaled he would not fire Federal Reserve Chair Jerome Powell and expressed openness to reducing tariffs on China. The STOXX 600 index rose 1.7%, led by strong SAP and BE Semiconductor Industries earnings. U.S. stock futures surged 2.5%, with the Dow Jones Industrial Average and S&P 500 set for a strong open. The dollar and Treasury yields initially rose on the news, but gains moderated as European trading progressed. Market sentiment improved as Treasury Secretary Scott Bessent predicted a “de-escalation” in U.S.-China trade tensions, though analysts caution that volatility may persist4589.

3. Investors Shift to Safe Havens Amid Ongoing Volatility

Despite the equity rally, many investors remain cautious, moving funds into gold and other safe-haven assets. Gold prices rose 8% in April, reaching new records as investors hedged against inflation and ongoing trade uncertainty. The Cboe Volatility Index (VIX) fell 8.6% but remains elevated compared to historical norms, reflecting persistent market anxiety. Analysts note that while some capital is “on the sidelines” in gold and cash, it could return to equities if trade tensions ease further68.

4. Corporate Earnings in Focus as Tariff Impacts Mount

Dozens of major companies are reporting earnings this week, with investors closely watching how tariffs affect revenue and profit outlooks. SAP shares surged after beating profit forecasts, while Tesla and Intuitive Surgical saw mixed results due to cost pressures and tariff impacts. Analysts expect continued volatility in earnings reports as companies navigate higher input costs and shifting global demand. Sectors like technology and industrials remain particularly sensitive to trade policy developments5710.

Sources:

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The views and opinions expressed are based on sources believed to be reliable, but their accuracy or completeness is not guaranteed. Any forward-looking statements are based on current expectations and projections, which may change without notice.

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Midday Market Roundup for Wednesday, April 23, 2025

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