Wednesday Afternoon Coffee - Markets Update - 23 Apr 2025 - Markets Climb as U.S. Signals Tariff Truce; Gold Retreats, Coffee and Cocoa Surge

Markets Update: U.S. stocks soared Wednesday and the dollar strengthened, while gold retreated from record highs, as optimism grew that tensions in the U.S.-China trade war could soon ease. Investors welcomed conciliatory comments from the Trump administration and a pause in pressure on the Federal Reserve, fueling a broad market rally.

Global Markets Roundup: 23 Apr 2025

Wall Street Surges on Trade Hopes

Equities posted strong gains across the board after Treasury Secretary Scott Bessent said the high tariffs between the U.S. and China are “not sustainable.” President Donald Trump echoed the sentiment, expressing confidence in reaching a “fair deal” with China—though he offered no specifics. In another market-friendly shift, Trump backed off threats to remove Federal Reserve Chair Jerome Powell, removing a key source of recent investor anxiety.

The upbeat tone pushed major indexes sharply higher:

Dow Jones Industrial Average: +426.71 points (+1.09%) to 39,612.42
S&P 500: +91.83 points (+1.73%) to 5,379.12
Nasdaq Composite: +457.34 points (+2.79%) to 16,755.85

Tesla shares surged 8.1% despite weaker-than-expected results, as CEO Elon Musk announced plans to reduce his involvement in government advisory roles to focus on his core businesses. Boeing jumped 6.6% after posting a narrower-than-expected quarterly loss. Globally, MSCI’s All-Country World Index gained 1.45%, while Europe’s STOXX 600 rose 1.78%.

Dollar Rebounds, Gold Falls from Highs

The U.S. dollar gained ground against major currencies as trade tensions eased and markets recalibrated inflation expectations.

Dollar Index DXY: +0.32% to 99.88
Euro EURUSD: -0.88% to $1.1319
Yen USDJPY: +1.32% to 143.45

Gold, which hit record highs earlier in the week on geopolitical fears, dropped 3% to $3,281.60 an ounce as safe-haven demand cooled.

Treasury Yields Flat as Credit Concerns Linger

Benchmark 10-year Treasury yields held steady at 4.389%, with investors still cautious amid concerns over inflation and long-term U.S. credit risks. Citadel CEO Ken Griffin warned that political pressure on the Fed could erode confidence in Treasuries.

Oil Drops; Coffee, Cocoa Extend Rally

Crude prices edged lower on concerns about global demand despite the trade thaw:

WTI Crude (CL1!): -$1.40 to $62.27/barrel
Brent Crude (BRN1!): -$1.32 to $66.12/barrel

Coffee and cocoa led commodity gainers. Arabica coffee futures soared above $3.92/lb, the highest since late March, on forecasts for a 3–6.4% drop in Brazil’s 2025/26 crop due to dry weather. Cocoa futures rose past $9,300/tonne, driven by persistent supply worries.

Grains Mixed as Soybeans Hit Higher

Soybeans climbed to a near two-month high, supported by strong Chinese demand:

Soybeans (ZS1!): +4¼ cents to $10.50¼/bushel
Corn (ZC1!): -4 cents to $4.79¼/bushel
Wheat (ZW1!): -6¾ cents to $5.43½/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