From Yahoo Finance: 2025-03-24 17:02:00

Nasdaq saw its third-biggest gain of the year as investors react positively to reports suggesting Trump’s tariff plans may be less severe than expected. U.S. business activity uptick fueled Wall Street optimism, with all S&P sectors rising. Asian, U.S., and global equities surged, while gold prices fell for a third day.

Tesla led the tech sector with a 12% gain on Wall Street. Despite Trump hinting at tariff breaks for some countries, trade war fears linger. Oil prices rose after Trump announced a 25% tariff on oil and gas purchases from Venezuela. Yen fell, while U.S. Treasury yields spiked.

Atlanta Fed President expects only one rate cut this year due to slower-than-expected inflation. China’s Vice Premier met with heads of major companies, improving investor sentiment towards China. Demand for U.S. assets from abroad shows signs of decline, with recent outflows affecting stock performance.

Foreign central banks sold $28 billion in U.S. equities in January, the fastest pace ever. This trend explains U.S. stocks’ underperformance compared to global markets. TIC data shows significant net capital inflows into U.S. assets in recent years, potentially indicating a shift in global investment flows. Foreign investors are expected to continue buying U.S. equities in 2025, with estimates of $300 billion in net purchases. Factors include a weaker dollar, recent price corrections, and U.S. market liquidity. However, uncertainty remains due to political and economic factors. The future of investment flows will be critical in the coming months.

Upcoming market movers include data on South Korea consumer sentiment, Hong Kong trade, UK inflation, and U.S. consumer confidence. Key events include Bank of Japan minutes, U.S. Treasury note auction, and speeches by Fed officials. Market watchers are advised to stay informed on these developments.

Recent shifts in investment flows away from U.S. assets are attributed to various factors including stretched valuations, market concentration, and global economic developments. It is unclear whether this trend is temporary or a long-term paradigm shift. The next few months will be crucial in determining the trajectory of investment flows.

Read more: Tariff fears cool, tech sizzles