Stocks surge on trade deal hopes, but concerns remain over tariffs and economic impact

From Nasdaq: 2025-04-08 12:22:00

Stock indexes surged today, with the S&P 500 up +3.05%, Dow Jones up +3.01%, and Nasdaq 100 up +3.39%. Futures are also higher, with June E-mini S&P up +3.04% and Nasdaq up +3.16%. Optimism over a potential tariff deal with Japan sparked the rally after a call between Trump and Ishiba.

Concerns persist over tariffs as Trump rejected an EU proposal and China threatened retaliation. Chicago Fed President Goolsbee warned about tariffs leading to economic conditions of 2021 and 2022. Worldwide markets sank on trade war fears, with Trump imposing tariffs on many countries and industries.

Stocks have been pressured by recent tariff actions, with Trump imposing tariffs on various goods and auto imports. The market anticipates a 27% chance of a rate cut after the May FOMC meeting. This week, focus is on US trade policies and key economic data releases, including Q1 earnings reports.

Health insurance stocks are soaring on Medicare payment increases, with Humana up +13%. Chip makers are also climbing, boosting the market. Marvell Technology sold its automotive business to Infineon. Broadcom authorized a $10 billion buyback. Eli Lilly upgraded to buy by Goldman Sachs.

Teradata Corp is up after an upgrade by Morgan Stanley. Range Resources also gained after an upgrade by Roth Capital Partners. Levi Strauss reported strong revenue. Walgreens Boots Alliance beat sales expectations. RPM International fell short on net sales. AT&T and Virtu Financial dropped after downgrades.

Earnings reports for April 8 include Aehr Test Systems, Cal-Maine Foods, Dakota Gold Corp, Kura Sushi USA, Mama’s Creations, PACS Group, RPM International, Walgreens Boots Alliance, and WD-40 Co. Rich Asplund did not hold positions in mentioned securities. All information in this article is for informational purposes only.



Read more at Nasdaq: Stocks Sharply Higher on Hopes for US Trade Deals