Like a reel that rewinds, the markets, which had plummeted in the previous sessions, they are backing up after the latest more accommodating statements from Trump. Listening to President Trump yesterday, it was like all the sarcasm towards the head of the Fed Jay Powell – the threats, the insults – were the result of a crazy misunderstanding. Trump now says he has “no intention of firing him” and was just “cautiously” trying to get a rate cut or two. Also in the same press conference, Trump said that the exorbitant taxes on Chinese products, following the rapid escalation of the tit-for-tat trade war, they have become so high that they will soon be “substantially” reduced. To this must be added the US quarterly reports mostly positive results, Elon Musk who distances himself from the Doge, to dedicate himself more to his businesses and also a climate that would seem more relaxed on the Ukrainian front.
La market reaction was immediate, even putting growth cuts by the International Monetary Fund. Investors who have returned to invest in the dollar after days of heavy selling, dubbed “sell America,” which had pushed the currency to multi-year lows against currencies such as the euro and Swiss franc. The treasury bonds In the long run they have recovered, as Trump's U-turn on Powell appears to have eased the threat to monetary credibility and taxation of the United States. The actions of Wall Street have picked up again, which has lifted stock markets in Asia and it seems destined to support also Europe.
Bessent is Trump's voice of reason. But the headaches remain
With just a week to go until the symbolic 100th day of Trump's second term in the Oval Office, you might think that market participants would have grown accustomed to his sudden changes of course and about-faces. Instead, there are many headaches and multiple theories about what is going on behind closed doors. Many analysts speculate that, with the dollar in free fall, the Secretary of the Treasury Scott Bessent intervened again as the voice of reason, explaining how destabilizing any interference with an independent central bank would be for markets. He is believed to have done so during the Treasury market crash earlier this month, which forced a “Liberation Day” tariff suspension.
In any case, many analysts insist that it is necessary to achieve concrete trade agreements before the markets can return to true stability. The Trump administration cited its old ally, the Japan, for the first round of negotiations, which could set a precedent that other trading partners could follow. A source told Reuters that the two sides are approaching a provisional agreement, but that the thorniest issues are being postponed. Besent supported Trump's assertion that de-escalation was likely with the China, but described future negotiations with Beijing as “a real drag” and the two sides have not yet agreed to even start talking about it.
Wall Street cheers and continues to grow even after the close
U.S. stocks rebounded yesterday, helped by a series of reports on quarterly earnings and signs of a reduction in US-China trade tensions that attracted buyers from outside. They then rose further in the after-hours with Trump's statements on Powell. During the session, a broad rally sent all three major US indices up more than 2,5%.
La first quarter earnings season has entered the fray. So far, 82 of the S&P 500 companies have reported results. Of these, the 73% exceeded expectations, According to LSEGAnalysts now predict a earnings growth S&P 500 Index Aggregates equal to 8,1% for the January-March period, down from the 12,2% growth expected at the start of the quarter, according to LSEG. Shares of the industrial conglomerate 3M è jumped by 8,1% after the company posted better-than-expected first-quarter earnings forecasts, although it flagged a likely negative impact on 2025 earnings from tariffs. Northrop Grumman tumbled 12,7% after reporting a sharp decline in profits. The aerospace and defense company RTX fell 9,8% after reporting a potential $850 million hit to its annual profits due to tariffs.
In closing the Dow Jones Industrial Average rose 2,66% to 39.186,98, the S&P 500 gained 2,51% to 5.287,76 and the Nasdaq The Composite rose 2,71% to 16.300,42. All 11 major sectors of the S&P 500 advanced, with financials and consumer staples enjoying the biggest percentage gains.
The head of Tesla, X and SpaceX, Elon Musk, told analysts he will significantly reduce his chainsaw work at Doge to focus on running his businesses. The shares Tesla rose 5,5% after the close of trading, though that's little consolation compared to the nearly 50% decline the stock has seen since its December peak. Tesla ended the first quarter of 2025 with a 71% net profit plunge.
Indicating that operators expect a Wall Street rises on Wednesday, S&P 500 futures jumped nearly 2% following Trump's comments, while Amazon.eats Nvidia they rose by 3% each and Apple rose 2% in after-hours trading.
The enthusiasm on the markets even overshadows the International Monetary Fund which last night cut its growth forecast for the United States, China and most other countries, citing the impact of US tariffs, now at their highest in 100 years, and warning that rising trade tensions will slow growth further: the rapid escalation of trade tensions and the “extremely high levels” of uncertainty about future policies will have a significant impact on global economic activity, it said. The IMF has lowered its growth forecast by 0,5 percentage points to 2,8% for 2025 and by 0,3 percentage points to 3% from its January forecast, which had seen growth reach 3,3% in both years. It added that it is expected to inflation will decline more slowly than expected in January, given the impact of tariffs, reaching 4,3% in 2025 and 3,6% in 2026, with “significant” upward revisions for the United States and other advanced economies. For the United States The IMF revised down its growth forecast by 0,9 percentage points to 1,8% in 2025 (one percentage point lower than growth of 2,8% in 2024) and by 0,4 percentage points to 1,7% in 2026, citing political uncertainty and trade tensions.
Ukraine: Any clearing up?
On the Ukrainian front, some clearings seem to be visible. President Volodymyr Zelensky He said that Ukraine will be ready to hold talks with Russia in any format once the ceasefire is in place, but warned that it would be impossible to quickly agree on all the terms of a peace deal. At a briefing in Kiev, the Ukrainian president told reporters that a Ukrainian delegation meeting with senior Western officials in London would be mandated to discuss a full or partial ceasefire. Zelenskiy also said he was ready to meet with U.S. President Donald Trump during his visit to the Vatican.
Asia benefits from tariff easing
Trump's more dovish statements on the trade war also brought relief to Asian stock markets. Even the dollar partially recovered the heavy losses suffered recently, rising by 0,8% on the yen Japanese yen at 142,72 and moving away from a seven-month low of 139,89. The greenback rose 0,8% on the Swiss franc, settling at 0,8262, while the euro fell 0,6% to $1,1348.
Il Nikkei jumped 2,3% in early trading despite mixed PMI data, which showed strength in services and a prolonged decline in manufacturing in April. The main index South Korea grew by 1,4%. The'MSCI index Asia-Pacific's broadest share outside Japan is up 0,3%. The Hang Seng Index Hong Kong Sensex rises by +2,4%. Mumbai + 0,3%.
European stock exchanges
European stock markets are also seen with positive expectations at the opening, with the Eurostoxx50 future indicating a +1,67%.
nexi. It reported revenue growth of 3,7% in the first quarter of 2025, in line with the guidance provided to the market. Banca Mediolanum. JPMorgan cut the target to 16,60 euros.
Unicredit. The government has placed requirements on UniCredit's offer proposal for Banco Bpm to avoid "even the slightest risk" that the savings collected by Banco Bpm will benefit the Russian economy. UniCredit has responded to the government by expressing its doubts about the requirements imposed with the Golden Power and until a response it will not be able to make any decision on the continuation of the takeover bid for Banco Bpm.
Eni. Redburn cuts rating to Neutral, target 13,40 euros.
Fineco. JPMorgan cut the target to 19,40 euros.
Pirelli. Bernstein upgraded the stock to Market Perform, target 5,20 euros.
Poste. Citi raised its target to 18,50 euros.
Saipem. Redburn Atlantic has reduced the target from 3,2 to 2,8 euros.
Wiit. Equita upgraded its rating from Hold to Buy, target 22 euros.
