Wall Street signals potential recovery from stock selloff, but caution remains amid trade policy uncertainties ahead of tariff announcements.

In Short

Wall Street traders see signs that the recent US stock selloff may be concluding, with strategists from JPMorgan and Morgan Stanley cautiously optimistic about a potential recovery. However, they advise caution before heavily investing in equities due to pending trade policy announcements and the need for clarity on tariffs.

Traders on Wall Street are beginning to see signs that the recent US stock selloff may be ending.

Equity strategists from firms like JPMorgan Chase and Morgan Stanley believe the worst of the downturn is likely over.

Positive investor sentiment metrics and seasonal factors support this view.

Targeted tariffs

Major US stock indexes rebounded following reports of President Trump’s plan to implement targeted tariffs, alleviating some inflation and economic concerns.

The stock market had experienced a sharp decline since mid-February, with the S&P 500 Index suffering its seventh-fastest 10% drop in nearly a century, translating to over $5.6 trillion lost in market capitalisation.

JPMorgan noted that much of this decline affected momentum stocks, which had registered significant gains prior to the downturn, but this has alleviated previous crowding in that market segment.

Recent market recoveries have been noted in sectors that were hit hardest during the selloff, particularly among the so-called Magnificent Seven stocks.

Strategists, including those from Morgan Stanley, are cautiously optimistic about a potential tradeable rally, influenced by various factors including a falling US dollar and pessimistic market sentiment.

ASX200 rises amid potential US rate cuts and Chinese stimulus as mining and banks drive market gains.

In Short

The Australian share market rose, driven by hopes for a US interest rate cut and potential Chinese stimulus, with significant gains in resources and energy sectors. The ASX200 closed up 64.4 points, while some tech stocks had mixed results and Clarity Pharmaceuticals was the biggest loser.

The Australian share market experienced a significant uplift today, driven largely by discussions surrounding a potential interest rate cut by the US Federal Reserve and the anticipated stimulus measures from China.

The ASX200 rose by 64.4 points, or 0.83 per cent, closing at 7854.1. The All Ordinaries index also saw gains of 68.80 points, or 0.86 per cent, ending at 8082.1.

The Australian dollar appreciated by 0.03 per cent, purchasing US63.25 cents at the market close.

Eight of the eleven sectors in the ASX concluded positively, with the materials sector leading the way, increasing by 1.58 per cent.

Speculation on new Chinese stimulus measures contributed to this rise, with BHP, Rio Tinto, and Fortescue all recording notable gains.

Mineral Resources surged by 11.57 per cent, marking it as the day’s top performer.

Many mining stocks also witnessed substantial increases, including IGO and Pilbara Minerals.

In the energy sector, Woodside Energy and Ampol saw price increases amid renewed investor interest in riskier assets.

The big four banks notably supported the market’s advance, with Commonwealth Bank and ANZ both rising.

Meanwhile, local tech stocks showed mixed results as excitement grows with the US GTC conference beginning today.

The tech sector in Australia is anticipated to reach substantial growth in the coming years, as experts express cautious optimism amidst current market sentiment.

Dow gains over 650 points in relief bounce but still faces worst weekly loss since 2023 amid ongoing tariff uncertainties.

In Short

Stocks rebounded on Friday, with the Dow gaining 674.62 points, and the S&P 500 and Nasdaq experiencing their best day of 2025. Despite this, all major indices faced weekly losses due to ongoing trade policy concerns and declining consumer confidence.

Stocks rallied on Friday, reversing some losses from earlier in the week.

The Dow Jones Industrial Average gained 674.62 points, or 1.65%, closing at 41,488.19.

The S&P 500 climbed 2.13% to finish at 5,638.94, while the Nasdaq Composite rose 2.61% to settle at 17,754.09. This marked the best day for the S&P 500 and Nasdaq in 2025.

Big tech companies rebounded sharply, with Nvidia up over 5%, Tesla rising nearly 4%, and Meta Platforms gaining close to 3%.

Amazon and Apple also saw increases.

The market bounce was attributed to a lack of new tariff-related news from the White House, alleviating some investor concerns.

Following a drop on Thursday, the S&P 500 entered correction territory, having fallen more than 10% from its recent peak.

The Nasdaq slid deeper into correction, while the small-cap Russell 2000 neared a bear market. Uncertainty stemming from President Trump’s trade policies has contributed to heightened market volatility.

Despite Friday’s gains, the three major indices experienced weekly losses, with the Dow down about 3.1%—the worst week since March 2023. S&P 500 and Nasdaq both fell over 2% for their fourth straight weekly decline.

Consumer confidence also declined amid ongoing tariff concerns, with sentiment dropping to 57.9 in March.

Investors await an upcoming Federal Reserve policy meeting, where a majority expect interest rates to remain unchanged.