Markets rise across regions while US job data and court rulings temper tariff concerns
Markets across North America, Europe, and Asia posted modest gains on Tuesday, as investors largely brushed aside renewed tariff tensions from US President Donald Trump and focused instead on economic data and earnings reports.
According to BNN Bloomberg, Canadian and US equities climbed as the latest developments in the trade conflict failed to spark major volatility.
Hong Kong’s Hang Seng index rose 1.5 percent, standing out among Asian markets, despite a report indicating a slowdown in Chinese manufacturing for May.
In South Korea, markets remained closed for a snap presidential election, in which opposition leader Lee Jae-myung secured victory.
As per BNN Bloomberg, the election followed the removal of Yoon Suk Yeol, who now faces trial over rebellion charges tied to his brief declaration of martial law in December.
European indexes also recorded modest gains, contributing to the global upswing, even as uncertainty over US tariffs lingered.
CNBC reported that investors are increasingly viewing the levies as a negotiating tactic rather than a sustained economic threat.
A federal court recently struck down one round of tariffs, although an appeals court temporarily reinstated them.
In the US, the S&P 500 climbed 0.6 percent, bringing it within 2.8 percent of its record high. The Nasdaq rose 0.8 percent and the Dow Jones Industrial Average added 214 points or 0.5 percent.
Tech shares led the recovery, with Nvidia up 2.9 percent and Broadcom gaining 3.3 percent.
According to CNBC, Nvidia’s performance briefly lifted it past Microsoft to become the world’s most valuable public company once again.
Dollar General jumped 15.8 percent after reporting stronger-than-expected quarterly profit and revenue, while also raising its full-year outlook.
The company added, however, that “uncertainty exists for the remainder of the year” due to the potential impact of tariffs on customers, as noted by BNN Bloomberg.
The OECD revised its US economic growth forecast downward to 1.6 percent for 2024, from 2.8 percent in 2023, citing the ongoing policy uncertainty.
Nevertheless, job openings in the US exceeded expectations at the end of April, indicating continued labour market strength.
Bond markets remained calm, with the yield on the 10-year Treasury dipping slightly to 4.45 percent from 4.46 percent.
Yields had climbed in recent months amid concerns over growing US debt levels due to tax policies.
Futures trading late Tuesday suggested little movement ahead, with CNBC noting that Dow futures were up 26 points or 0.06 percent, S&P 500 futures increased 0.07 percent, and Nasdaq 100 futures gained 0.04 percent.
In extended trading, CrowdStrike dropped over 6 percent following soft revenue guidance, while Hewlett Packard Enterprise rose 3 percent after surpassing earnings expectations.
In Canada, the S&P/TSX composite index rose 37.68 points to 26,426.64.
The Canadian dollar ended the session at 72.87 cents US, slightly down from 72.96 cents US the previous day.
Oil and gas prices inched higher, with the July crude oil contract up 89 cents to US$63.41 per barrel and natural gas up three cents to US$3.72 per mmBTU.
Precious metals moved lower, with gold down US$20.10 to US$3,377.10 an ounce and copper off two cents at US$4.83 per pound.
