Stocks surge as US government shutdown is unlikely, global equity rally

From Nasdaq: 2025-03-14 19:30:17

Stock indexes surged on Friday, with the S&P 500 up +2.13%, Dow Jones up +1.65%, and Nasdaq up +2.49%. E-mini S&P and Nasdaq futures also rose. A US government shutdown seemed unlikely after Senate Democrats agreed to fund the government. Global equities were supported by a rally in Chinese stocks and upcoming policy measures. US consumer sentiment fell, but long-term inflation expectations rose.

Bitcoin rose over +4% after a stablecoin bill advanced in the Senate. Stocks faced pressure from US tariffs on Canadian, Mexican, and Chinese goods, along with retaliatory tariffs from the EU and Canada. Markets are expecting a 1% chance of a rate cut at the upcoming FOMC meeting. Overseas stock markets saw gains, with Euro Stoxx 50 up +1.42% and Shanghai Composite at a 3-month high.

Bond yields in Europe were mixed, with German bund yields up and UK gilt yields down. German CPI was revised lower. ECB member supports pausing rate cuts, citing neutral interest rates and inflation risks. In Germany, an agreement was reached on fiscal reforms. Swaps indicate a 53% chance of an ECB rate cut in April.

Stocks like Nvidia, Tesla, Meta Platforms, and Micron Technology led gains on Friday. Crypto stocks rallied with Bitcoin’s rise. DocuSign, Semtech, Ulta Beauty, Crown Castle, and Rubrik also saw significant gains. American Express rose after an upgrade, while Abbott Laboratories fell on legal issues. T-Mobile US and Xponential Fitness saw losses.

Earnings reports for March 17 included Altus Power, BioAge Labs, Eastman Kodak, Getty Images, and more. The author did not have positions in any mentioned securities. Information provided is for informational purposes only.



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