In a week that brought headlines from Washington to Wall Street, global markets are juggling optimism and anxiety in equal measure. With major policy shifts and historic market moves, here’s what you need to know:
Tariff Tensions Rise: Trump Doubles Down
President Trump has dialled up his protectionist agenda, announcing a doubling of tariffs on steel and aluminium imports—from 25% to 50%. The move, framed as a lifeline for U.S. industry, has rattled manufacturers and foreign partners alike. While the UK dodged the worst with a partial exemption, most exporters now face steeper costs and tighter margins.
This escalation arrives on the heels of a federal court ruling questioning the legality of Trump’s earlier tariffs under the International Emergency Economic Powers Act. Although the decision is paused pending appeal, it reflects growing pushback against executive overreach. Nevertheless, Trump shows no sign of backing down, continuing to lean on tariffs and sanctions as instruments of power.
Markets Are Volatile but Resilient
Despite the geopolitical friction, U.S. equities ended Tuesday in the green. Strong economic data helped soothe nerves, with:
S&P 500 up 0.6%
Dow Jones up 0.5%
Nasdaq up 0.8%
Russell 2000 (small-cap index) jumping 1.5%
Nvidia stole the spotlight, officially surpassing Microsoft to become the world’s most valuable company, with a market cap soaring to $3.444 trillion. AI optimism continues to fuel investor appetite, positioning Nvidia at the heart of the tech-driven rally.
OECD Warns of Slower Growth Ahead
Not all signals were positive. The OECD cut its global growth forecast, citing uncertainty around U.S. trade policy. Key projections include:
U.S. GDP to shrink from 2.8% in 2024 to 1.6% in 2025, falling further to 1.5% in 2026.
China’s manufacturing showed its steepest decline since 2022, with smaller exporters bearing the brunt of U.S. tariffs.
Even with a formal trade truce in place, fears of retaliation and regulatory unpredictability continue to spook global markets.
Jobs Data Offers a Silver Lining
Balancing the tension, April's JOLTS report (Job Openings and Labor Turnover Survey) brought welcome news: job openings rose to 7.39 million, along with an uptick in the hiring rate. With Friday’s employment data on deck, markets are cautiously hopeful that the U.S. labor market remains strong enough to weather policy turbulence.
Crypto Update: Whales, Wobbles & Watching Support Levels
Crypto markets mirrored the uncertainty, slipping 4.5% to a total market cap of $3.39 trillion. Most top 100 coins posted slight losses, while Bitcoin and Ethereum hovered near key support levels.
Bitcoin dipped as whales—large holders—began profit-taking, triggering follow-on selling across the board. Though price action has been relatively subdued, trading volumes are at multi-week lows, suggesting a pause in conviction.
Meanwhile, institutional interest hasn't faded. Ethereum ETFs saw inflows, contrasting with outflows from Bitcoin ETFs, signaling divergent sentiment between the two giants.
Looking Ahead: What’s Next?
With Trump pushing for more “reciprocal” tariffs and trade talks stuck in neutral, markets remain on edge. A potential call between President Trump and President Xi could offer clarity—or spark fresh volatility.
As always, global investors are watching the political chessboard closely. For now, tech stocks and strong job data are keeping sentiment afloat—but uncertainty is the name of the game.
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