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Markets Update: U.S. stocks fall due to renewed worries over tariffs. The dollar strengthens as gold retreats from record peaks. Markets focus on Trump’s reciprocal tariff implementation and global tensions. Oil and agricultural commodities show mixed results amid supply and trade uncertainties.
Global Markets Roundup: 21 March 2025
U.S. stocks fell on Friday, mirroring losses across European and Asian markets, as investors stayed cautious ahead of the expected rollout of U.S. reciprocal tariffs and continued geopolitical turmoil. A stronger dollar and a pullback in gold prices underscored the day’s risk-off tone. All three major U.S. indexes were in the red in early trading, dragged lower by economically sensitive sectors such as transportation, housing, and materials.
Fed's Caution and Tariff Worries Keep Pressure on Risk Appetite
Markets remained subdued following a week dominated by central bank decisions. The Federal Reserve, along with the Bank of England and Bank of Japan, all left interest rates unchanged, opting for a wait-and-see approach as global economic uncertainty persists.
Chicago Fed President Austan Goolsbee said it remains an open question whether President Donald Trump's aggressive tariff policies will trigger persistent inflation, adding that the Fed needs more time to understand their full impact.
The lack of major U.S. economic data kept the focus on next week’s reports, including housing, industrial production, and the final reading of Q4 GDP, alongside the PCE inflation index, the Fed’s preferred gauge.
Markets Snapshot
Dow Jones Industrial Average fell 223.38 points (0.52%) to 41,733.07
S&P 500 dropped 23.48 points (0.41%) to 5,639.41
Nasdaq Composite slipped 51.15 points (0.28%) to 17,641.63
Global Markets and Currencies
European markets pulled back but remained on track for weekly gains, supported by strong year-to-date performance. Germany’s upper house is set to pass a major fiscal stimulus bill, bolstering sentiment.
STOXX 600 fell 0.62%, FTSEurofirst 300 slipped 0.61%
MSCI World Index declined 0.48% to 839.39
Asia-Pacific index ex-Japan closed 0.83% lower, Nikkei down 0.20%
The dollar strengthened, supported by the Fed’s cautious tone and investor demand for safe havens ahead of the April 2 tariff deadline.
Treasuries Hold Steady
U.S. Treasury yields moved narrowly as markets priced in minimal near-term changes from the Fed:
10-year yield rose 0.6 bps to 4.239%
30-year yield climbed 2.2 bps to 4.578%
2-year yield fell 2.6 bps to 3.931%, reflecting tempered rate-cut bets
Gold Pulls Back After Record Run
Gold retreated from record highs reached earlier this week as the dollar firmed and some risk appetite returned:
Spot gold dropped 0.94% to $3,015.75/oz
U.S. gold futures fell 1.29% to $3,000.90/oz
Oil Gains on Iran Sanctions, OPEC+ Supply View
Crude oil edged higher, poised for a second straight weekly gain, as fresh U.S. sanctions on Iran and OPEC+ production restraint stoked supply concerns:
WTI crude rose 0.32% to $68.29/bbl
Brent crude gained 0.10% to $72.07/bbl
Agricultural Commodities Mixed
Cocoa prices plunged to 4¼-month lows, pressured by signs of improved supply:
ICE NY cocoa (May) down 4.63%
London cocoa (May) fell 3.74%
Cotton continued to slump, weighed down by declining demand from China due to retaliatory tariffs. Chinese cotton imports from the U.S. are down about 80% year-on-year, according to government data.
Grains were mixed:
Wheat (CBOT May) flat at $5.57¼/bushel, but still up 0.1% weekly amid tightening Black Sea supply
Soybeans rose 0.5% to $10.13¾/bushel
Corn dipped 0.5% to $4.68¾/bushel
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team