• U.S. stock futures edged higher on Tuesday, attempting to recover from significant losses on Monday.
• Major U.S. indexes (S&P 500, Dow, Nasdaq) experienced a bruising session on Monday, marked by steep declines, particularly in “Magnificent Seven” tech stocks. Monday was the fourth consecutive day of losses for both the Dow and Nasdaq. The market downturn was attributed to rising investor unease over political developments and uncertainty regarding monetary policy direction.
• President Donald Trump’s intensified criticism of Federal Reserve Chair Jerome Powell raised concerns about the central bank’s independence and added to market jitters.
• The ICE U.S. Dollar Index weakened to a three-year low (lowest since March 2022), reflecting waning confidence in U.S. economic and monetary leadership.
• Tesla is scheduled to report earnings after the close on Tuesday, with attention on declining deliveries and strategic priorities under Elon Musk, as well as the impact of tariffs.
• European markets were mixed, with the Stoxx 600 down and London’s FTSE 100 rising. Asia-Pacific markets were mixed in reaction to Wall Street’s sell-off and Trump’s comments on the Fed.
• U.S. Treasury yields were mixed on Tuesday, with the 10-year yield slightly lower and the 2-year yield higher, reflecting uncertainty. Confidence in U.S. government debt is subdued, partly due to political pressure on the Fed and U.S.-China tensions.
• Gold’s surge to an all-time high ($3,424.24, briefly over $3,500) was fueled by safe-haven demand following Trump’s remarks on the Fed and a weaker dollar. JPMorgan sees potential for gold to exceed $4,000. Oil prices recovered slightly on Tuesday, but caution remains due to trade and monetary policy concerns. Bitcoin moved higher following MicroStrategy’s purchase, though other cryptocurrencies were less enthusiastic.
• The weakening dollar has led to appreciation in safe-haven currencies like the Japanese yen, Swiss franc, and euro. Market sentiment deteriorated further after Trump’s announcement of “reciprocal” tariffs on April 2nd, leading to significant declines in major indexes since then.

U.S. stock futures edged higher on Tuesday as investors attempted to recover from a bruising session on Wall Street. All major indexes fell on Monday, weighed down by steep losses in the “Magnificent Seven” tech stocks. The declines reflected rising investor unease around political developments and monetary policy direction. Monday marked the fourth consecutive day of losses for both the Dow and Nasdaq.

Sentiment was further pressured after President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, raising fresh concerns about the independence of the central bank. The uncertainty around leadership at the Fed added to broader market jitters already driven by a lack of meaningful progress in global trade talks.

In currency and commodity markets, the U.S. dollar weakened to a three-year low, while gold surged to another all-time high. Together, the moves suggest that global investors are increasingly reallocating away from U.S. financial assets and seeking safety in havens less exposed to domestic political risk.

US Market Previous Day:

U.S. stocks slumped on Monday, marking a rough start to the week as major indexes logged their worst single-day performance in months. The S&P 500 declined 2.36% to 5,158.20, while the Dow Jones Industrial Average tumbled 971.82 points, or 2.48%, to close at 38,170.41. The Nasdaq Composite dropped 2.55% to 15,870.90. The ICE U.S. Dollar Index also weakened, falling as low as 97.92—its lowest level since March 2022—reflecting waning confidence in U.S. economic and monetary leadership.

(Source: TradingView.com)

The selloff was broad-based, with tech stocks bearing the brunt of investor anxiety. Tesla dropped nearly 6% ahead of its first-quarter earnings report, extending its year-to-date losses to 44%. Nvidia shed over 4%, while Amazon and Meta each declined 3%. Industrial heavyweight Caterpillar also fell 2.8%, underscoring a broader pullback across sectors.

US Futures in Green:

• Dow Jones Industrial Average futures rose by 0.83%
• S&P 500 futures showed gains of 0.82%
• Nasdaq Composite futures lead the pack with gains of 0.93%.

Biggest Premarket Movers

• GE Aerospace: Saw its shares climb more than 4%, buoyed by adjusted earnings of $1.49 per share which topped LSEG analyst expectations of $1.27, even as revenue came in slightly under projections.
• Hertz Global Holdings: Shares retreated nearly 2%. This follows a dramatic 112% surge last week driven by Bill Ackman’s Pershing Square acquiring a 19.8% stake (via shares and swaps), though the stock had already slipped 5% on Monday.
• Zions Bancorporation: Experienced a drop of almost 4% after reporting first-quarter earnings of $1.13 per share, missing the LSEG forecast of $1.18.
• 3M: Enjoyed a nearly 6% share price increase. The company surpassed first-quarter expectations with adjusted earnings of $1.88 per share and $5.78 billion in revenue, edging out Refinitiv analyst estimates.
• Amazon: Shares ticked up almost 1%. Wells Fargo noted this followed reports of Amazon delaying some new data center lease commitments, particularly overseas, for its leading AWS cloud division.
• Calix: Surged 15%. Investors cheered its first-quarter results, which beat FactSet estimates on both earnings (19 cents vs. 13 cents expected) and revenue ($220.2M vs. $207.1M expected), coupled with an optimistic forecast.
• Medpace Holdings: Saw its shares fall 8%. The clinical research organization reported a nearly 19% year-over-year decline in net new business awards for the first quarter, which came in at $500 million.
• Verizon: Shares declined more than 4%. While the company lost more postpaid phone subscribers than expected, it did exceed LSEG forecasts for Q1 earnings ($1.19 vs. $1.15 est.) and revenue ($33.49B vs. $33.24B est.) and affirmed its confidence in meeting year-end targets.
• Lockheed Martin: Rose over 3% after reporting strong first-quarter profits and reaffirming its yearly outlook, benefiting from solid demand for its fighter jets and missile systems. Q1 revenue was up 4.5% year-over-year to $17.96 billion.

Key Economic Data/News:

U.S. President Donald Trump intensified his public criticism of Federal Reserve Chair Jerome Powell on Monday, calling for immediate interest rate cuts and warning of a potential economic slowdown. In a post on Truth Social, Trump stated, “‘Preemptive Cuts’ in Interest Rates are being called for by many,” and continued by saying, “There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW.” The comments mark a continuation of Trump’s escalating attacks on Powell, whom he has repeatedly blamed for not acting swiftly enough on monetary policy.

These latest remarks follow a similar post on Friday where Trump also pressured the Fed to lower rates and hinted at the possibility of Powell’s removal—an idea White House economic advisor Kevin Hassett later acknowledged was being examined by the administration. The intensifying rhetoric has raised fresh concerns about the independence of the U.S. central bank and is contributing to heightened uncertainty in financial markets.

Looking ahead, investors will closely monitor Tuesday’s release of manufacturing data from the Richmond Federal Reserve, which could offer additional insight into the state of industrial activity in the mid-Atlantic region. Additionally, a series of speeches from key Fed officials, including Vice Chair Philip Jefferson, Minneapolis Fed President Neel Kashkari, and Fed Governor Adriana Kugler, could further shape expectations around the future path of interest rates.

Earnings Season/Company News:

Tesla is set to report earnings after the bell on Tuesday, drawing heightened attention from investors amid concerns over both company performance and broader macroeconomic pressures. The electric vehicle maker recently reported a 13% decline in vehicle deliveries for the first quarter, and analysts now project revenue growth of less than 1% for the period. This would mark one of the company’s weakest growth quarters in recent years. CEO Elon Musk has recently been focused on U.S. government efficiency initiatives, raising questions about Tesla’s strategic priorities. In addition, Wall Street will be closely watching for commentary on the impact of tariffs, given Tesla’s supply chain reliance on parts from Mexico and China. The stock has fallen nearly 50% since President Donald Trump took office in January.

Earnings season continues Tuesday with several high-profile names set to report. These include aerospace defense giant Lockheed Martin, industrial conglomerate 3M Company, GE Aerospace, and telecom provider Verizon Communications.

Meanwhile, Strategy (NASDAQ:MSTR), the largest publicly traded corporate holder of Bitcoin, disclosed a new purchase of 6,556 coins for approximately $555.8 million. The acquisition, funded through stock offerings, brings the company’s total holdings to 538,200 Bitcoins. Strategy has consistently used equity issuance to build its position in digital assets, with Bitcoin now representing a core part of its corporate strategy.

Global Market Trends:

European equities opened the week on a cautious note following the Easter holiday break. The pan-European Stoxx 600 index was down 0.5% by mid-morning Tuesday, weighed down by weakness in healthcare stocks after U.S.-based Eli Lilly reported positive trial results for its oral weight-loss drug orforglipron. In contrast, London’s FTSE 100 rose 0.4%, setting the stage for a potential seventh straight session of gains—its longest winning streak in two years.

In Asia-Pacific, markets were mixed as regional investors reacted to Wall Street’s recent sell-off and President Trump’s renewed attacks on Federal Reserve Chair Jerome Powell. Japan’s Nikkei 225 fell 0.17% while the broader Topix index edged up by 0.13%. South Korea’s Kospi and China’s CSI 300 both closed essentially flat, while Hong Kong’s Hang Seng Index gained 0.78%. Australia’s S&P/ASX 200 dipped slightly by 0.03%.

Overall, global sentiment remains fragile as markets digest U.S. political tensions, ongoing trade frictions, and potential implications for interest rate policy and economic growth.

Debt Market:

Yields on U.S. Treasurys were mixed on Tuesday, reflecting ongoing investor uncertainty amid stagnant global trade negotiations and persistent political tensions. The yield on the benchmark 10-year Treasury edged slightly lower by less than 1 basis point to 4.399%, while the 2-year Treasury yield rose nearly 5 basis points to 3.798%.

(Source: TradingView.com)

Confidence in U.S. government debt remains subdued, driven in part by President Donald Trump’s repeated public criticism of Federal Reserve Chair Jerome Powell and calls for immediate interest rate cuts. These political pressures are adding to market unease and raising questions about central bank independence. Further weighing on sentiment are strained relations between the U.S. and China. Beijing issued a warning to other nations not to engage in agreements that might undermine Chinese interests, intensifying trade tensions.

Although there has been speculation that foreign investors may be offloading U.S. Treasurys, preliminary data from Japan’s finance ministry—analyzed by Moody’s Analytics—suggests that while Japanese investors have reduced foreign bond holdings, including Treasurys, the scale has not been significant enough to account for the recent yield surge.

Commodities and Other Assets:

Gold surged to an all-time high on Tuesday, briefly breaching $3,500 per ounce before retreating slightly, fueled by renewed safe-haven demand following President Trump’s remarks on the Federal Reserve. The weaker U.S. dollar made bullion more attractive to overseas buyers. Gold has now climbed 30% year-to-date to $3,424.24, extending gains of 27% in 2024 and 13% in 2023. JPMorgan’s commodity research team sees potential for gold prices to break $4,000 per ounce within the next 12 months, particularly if geopolitical tensions continue to rise.

Oil prices recovered alongside equities on Tuesday, though traders remain cautious due to concerns over trade tariffs and tightening monetary policy, both of which could weigh on fuel consumption. Market participants await weekly inventory data from the American Petroleum Institute and the Energy Information Administration. Preliminary expectations point to a decline in U.S. crude and gasoline stockpiles, while distillate inventories may have increased.

(Source: TradingView.com)

Bitcoin moved higher on Tuesday following a holiday-driven rally sparked by fresh purchases from Strategy, the world’s largest corporate holder of Bitcoin. The crypto saw renewed buying interest after Strategy disclosed a recent acquisition of over 6,500 coins. However, broader crypto markets were less enthusiastic, with many altcoins retreating despite Bitcoin’s modest gains. Year-to-date, Bitcoin remains down 5.6%, still feeling the drag from earlier volatility and investor caution over the potential fallout of President Trump’s trade and monetary policies.

Market Sentiment:

Uncertainty surrounding U.S. policymaking has prompted a broad flight from both the dollar and Treasurys in recent weeks, as investors reassess the risk profile of American assets. The ICE U.S. Dollar Index, which tracks the greenback against a basket of major foreign currencies, dropped to 97.92 on Monday — its lowest level since March 2022, according to FactSet. The dollar has weakened more than 9% so far this year, with much of the decline occurring after President Donald Trump’s inauguration in January.

This depreciation has driven a notable appreciation in safe-haven currencies such as the Japanese yen, Swiss franc, and euro, as investors seek alternatives amid mounting concerns over the direction of U.S. fiscal and monetary policy. The selling pressure intensified after Trump posted on Truth Social that the economy would slow unless the Federal Reserve cut interest rates immediately — once again referring to Fed Chair Jerome Powell as “Mr. Too Late.”

Market sentiment deteriorated further following Trump’s April 2 announcement of a sweeping “reciprocal” tariff plan targeting imports from key trading partners. That announcement rattled financial markets and sparked a sharp downturn in equities. Since the rollout of those tariffs, all three major indexes have fallen significantly: the S&P 500 is down 9%, the Nasdaq has shed nearly 10%, and the Dow has dropped 9.6%.

Monday’s steep sell-off marked another leg down in what has become a turbulent month for U.S. equities. The combination of political pressure on the Fed, an unpredictable trade policy stance, and a weakening dollar has driven investors toward safer assets and away from dollar-denominated holdings. The situation has been further exacerbated by public remarks from White House economic adviser Kevin Hassett, who confirmed the administration is examining legal avenues to potentially remove Powell — a move that has only deepened uncertainty around the Fed’s independence and the future direction of monetary policy.