MARKET SNAPSHOT

U.S. stocks ended higher after the Trump administration softened its rhetoric on China and Federal Reserve. Treasury yields were mixed as President Trump dialed down his criticism of Fed Chair Powell and foreigners increased their purchases of long-term Treasurys. Oil was lower on a report that Kazakhstan is unlikely to compensate for producing above its agreed level within the OPEC+ group. The dollar rose and easing anxieties over Trump's tariff policies and the Fed chair's fate sparked gold's worst daily decline since 2021.

MARKET WRAPS

EQUITIES

A rally in U.S. stocks continued for a second day, after the Trump administration addressed two of the market's biggest concerns by softening its tone on both China and the Federal Reserve.

The Dow Jones Industrial Average closed up around 1.1%, the S&P 500 rose 1.7%, and the Nasdaq Composite added 2.5%.

The Trump administration is considering slashing steep tariffs on Chinese imports -- in some cases by more than half -- in a bid to de-escalate tensions with Beijing, The Wall Street Journal reported. Stocks retreated from their morning highs, however, after Bloomberg quoted Treasury Secretary Scott Bessent as saying President Trump hasn't offered to take down U.S. tariffs on China on a unilateral basis.

Earlier Wednesday, Chinese shares ended mostly higher amid better sentiment. Investor concerns over escalating trade tensions with the U.S. eased after President Trump said that tariffs of 145% on Chinese goods would come down "substantially" after the two sides negotiate a deal.

The benchmark Shanghai Composite Index edged 0.1% lower, the Shenzhen Composite Index rose 0.8%, and the ChiNext Price Index added 1.1%. Hong Kong's Hang Seng Index rose 2.4%, supported by auto and tech stocks.

Japan's Nikkei Stock Average ended 1.9% higher as concerns of a U.S.-China trade war eased. Electronics, auto, and financial shares led the gains.

Stocks in Australia gained, as the S&P/ASX 200 rose 1.3%. Stocks in New Zealand rose, as the S&P/NZX 50 increased 1%.

COMMODITIES

Oil futures gave up early gains and settled lower, with the market rattled by a report that Kazakhstan is unlikely to compensate for producing above its agreed level within the OPEC+ group.

West Texas Intermediate for May delivery fell 2.2% to $62.27 a barrel, while Brent crude retreated 2% to $66.12 a barrel.

"The Kazakhstan story quickly morphed into other OPEC+ states wanting to increase production further," Mizuho's Robert Yawger said. OPEC+ already plans to accelerate production increases in May, regardless of lower demand estimates.

Gold suffered its biggest one-day drop in nearly four years, raising questions about whether a torrid rally driven by anxiety over President Trump's trade policies can continue as the administration appeared to take a more conciliatory approach.

April gold futures ended lost 3.7 to $3276.30 -- the largest one-day dollar decline since April 15, 2013.

TODAY'S TOP HEADLINES

White House Considers Slashing China Tariffs to De-Escalate Trade War

The Trump administration is considering slashing its steep tariffs on Chinese imports-in some cases by more than half-in a bid to de-escalate tensions with Beijing that have roiled global trade and investment, according to people familiar with the matter.

President Trump hasn't made a final determination, the people said, adding that the discussions remain fluid and several options are on the table. One administration official said Trump wouldn't act unilaterally and would need to see some action from Beijing to lower tariffs.

One senior White House official said the China tariffs were likely to come down to between roughly 50% and 65%. The administration is also considering a tiered approach similar to the one proposed by the House committee on China late last year: 35% levies for items the U.S. deems not a threat to national security, and at least 100% for items deemed as strategic to America's interest, some of the people said. The bill proposed phasing in those levies over five years.

Trump Tariffs Show Mixed Impact on Big Economies

Business activity in the U.S. and Europe weakened in April, in contrast to pickups in Japan and India, underlining the diverse ways in which higher U.S. tariffs are affecting economies around the world.

The S&P Global Flash Composite PMI-which gauges activity in the U.S. manufacturing and services sectors-fell to 51.2 this month from 53.5 in March. The reading above 50 suggests overall activity continued to expand, but at its slowest rate in nearly a year and a half.

Average prices meanwhile rose at their fastest rate in over a year, largely as a result of tariffs and their effect on import prices.

IMF Warns Against Support for Tariff-Hit Businesses as Government Debts Surge

Higher tariffs and heightened geopolitical tensions may push government debts to new highs over the coming years, making the need for policymakers to outline robust plans for containing the surge more pressing, the International Monetary Fund said Wednesday.

In its twice-yearly report on the outlook for government debt, the fund said total borrowings will likely rise above 95% of world economic output this year, and almost match global gross domestic product by the end of the decade.

"There is a sense of urgency," Vitor Gaspar, director of fiscal affairs at the IMF, said. "Ministers of finance must build trust, spend wisely, tax fairly and take the long view."

IBM Set to Benefit from Focus on AI, Automation as Clients Seek Efficiency in Uncertain Economy, CFO Says

The uncertain macroeconomic backdrop is prompting businesses to rethink their spending in an attempt to get the best possible returns on their investments, International Business Machines CFO James Kavanaugh said Wednesday.

The shift could pose a benefit to the tech company. "When you think about a very dynamic and uncertain environment, clients are focused on cost efficiency, cash preservation and liquidity," Kavanaugh said. "Our automation portfolio plays extremely well to that."

Sales across IBM's automation portfolio rose 14% in the first quarter, helping buoy the company's software segment 7% higher, to $6.34 billion.

Boeing Will Stop Making Jets for China if Airlines Won't Accept Planes, CEO Says

This was the quarter Boeing was waiting for. Then came President Trump's trade war.

The jet maker wanted to highlight financial results from its latest quarter showing that the company is emerging from its yearslong financial crisis. Instead, Chief Executive Kelly Ortberg spent much of the morning Wednesday talking about a pair of Boeing jets returned by China and issuing reassurances that tariff wars won't derail the company's turnaround.

In exchanges on CNBC and on a conference call with analysts, Ortberg said that Boeing would stop making jets for China if airlines won't take the planes and that Boeing could find other buyers for jets rejected by China. He said Chinese airlines returned the planes because of high tariffs resulting from the U.S.-China trade war.

Apple, Meta Fined by EU, Ordered to Comply With Tech Competition Rules

BRUSSELS-The European Union fined Apple and Meta Platforms hundreds of millions of dollars and ordered the companies to comply with the bloc's tech rules in a move that risks ratcheting up tensions with the Trump administration as officials pursue trade talks.

The European Commission, the EU's executive body, on Wednesday slapped Apple with a 500 million euro fine, equivalent to about $570 million, for allegedly breaching the bloc's Digital Markets Act. It fined Meta EUR200 million.

The commission also issued cease-and-desist orders that could have a bigger impact than the fines. One order targets Apple's App Store and the other takes aim at Meta's use of personalized ads-important revenue streams for each company.

Expected Major Events for Thursday

01:30/AUS: Mar RBA Bulletin

05:00/JPN: Mar Supermarket sales

06:00/JPN: Mar Revised Machine Tool Orders

23:30/JPN: Apr CPI (Tokyo), CPI ex-Food (Tokyo)

23:50/JPN: Apr Provisional Trade Statistics for 1st 10 days of Month

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(END) Dow Jones Newswires

April 23, 2025 17:02 ET (21:02 GMT)

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