Are We Saying Goodbye to Dollar Dominance? 👋💵
Are we just de-globalizing or is the world also slowly ghosting the dollar?
Capital Markets Insights | 14 April - 18 April
Stock analysis and capital markets insights for smarter investing
Dear Investor,
Markets reacted to a mix of tariff exemptions, corporate earnings, and Federal Reserve commentary. Stocks experienced significant swings, with the S&P 500 and Nasdaq posting mixed performances amid concerns about inflation, economic growth, and trade tensions. Key sectors like technology, healthcare, and consumer goods were influenced by company-specific developments and broader macroeconomic fears.
US
The White House announced temporary exemptions for consumer electronics from Trump’s reciprocal tariffs. However, investors remained cautious about the temporary nature of exemptions.
Strong bank earnings from Bank of America, Citigroup, and Wells Fargo provided some support but in the end stocks plunged as Federal Reserve Chair Jerome Powell warned of the “challenging” economic impact of tariffs, and Nvidia’s disclosure of costly chip export curbs to China hit tech stocks. The S&P 500 fell 1.5%, the Nasdaq dropped 2.31%, and the Dow 2.66%. The CBOE Volatility Index (VIX) remained elevated, reflecting investor anxiety.
GOLD
Gold surged 2.82% for the week as a safe-haven asset amid tariff-related uncertainty and economic turbulence.
WTI
Oil prices closed at 63.70 rising 4.70% for the week reflecting global trade tensions and economic uncertainty.
FOREX
The british pound was the strongest currency this week by gaining 1.64% against the dollar.
CRYPTO
Bitcoin closed the week at $84,470 (+0.94%) for the week.
ECONOMIC CALENDAR
Federal Reserve Chair Jerome Powell spoke at the Economic Club of Chicago, warning that tariffs could complicate monetary policy by driving inflation and slowing growth. His remarks triggered a sharp market sell-off, with the S&P 500 and Nasdaq dropping over 2%. The World Trade Organization reported a “sharply deteriorated” outlook for global trade due to Trump’s tariffs, impacting investor sentiment and boosting safe-haven assets like gold. Corporate Earnings: First-quarter earnings season began, with banks like Bank of America, Citigroup, and Wells Fargo reporting strong profits on April 15, supporting financial stocks. Netflix exceeded expectations on April 17, boosting its shares in extended trading.
- Federal Reserve Chair Jerome Powell spoke at the Economic Club of Chicago, warning that tariffs could complicate monetary policy by driving inflation and slowing growth. His remarks triggered a sharp market sell-off, with the S&P 500 and Nasdaq dropping over 2%.
- The World Trade Organization reported a “sharply deteriorated” outlook for global trade due to Trump’s tariffs, impacting investor sentiment and boosting safe-haven assets like gold.
- Corporate Earnings: First-quarter earnings season began, with banks like Bank of America, Citigroup, and Wells Fargo reporting strong profits on April 15, supporting financial stocks. Netflix exceeded expectations on April 17, boosting its shares in extended trading.
This Week's Top Gainer in US Markets (excluding small caps under $2B market cap)
- Company: HTZ (Hertz Global Holdings Inc)
- Gain: 111.83%
Hertz (HTZ) stock zoomed up Thursday after Bill Ackman’s Pershing Square dropped a bombshell: they snagged a 12.7 million-share stake (4.1% of the company) worth $46.53 million! The Wednesday SEC filing spilled the beans, revealing the position was kept hush-hush in their Q4 report but is now out in the open. Vroom vroom!
This Week's Top Loser
- Gain: -24.25%
UnitedHealth (UNH) stock tanked a whopping 24.25% this week, its worst day since ‘98, after a Q1 earnings miss and a slashed full-year profit outlook. The insurer posted $7.20 EPS (vs. $7.27 expected) and $109.6B revenue (vs. $111.6B). Full-year EPS guidance dropped to $26-$26.50 from $29.50-$30, citing pricey Medicare Advantage and Optum costs. The $120B market cap wipeout dragged the Dow down with it. CEO Andrew Witty vowed to “aggressively” fix the mess.
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