edged up after the S&P 500 index advanced for a sixth day on optimism that companies will be able to weather slowing economic growth and tariff-fueled disruptions.
Australian and Japanese shares climbed at the open and equity-index futures for Hong Kong pointed to a moderate gain. US stock futures edged lower after Super Micro Computer Inc. tumbled in late trading on a disappointing update. Treasuries extended this month’s advance, with 10-year yields falling for a seventh day. The dollar was little changed after strengthening on Tuesday. Gold rose and oil dropped.
The stock rally faces a key test Wednesday when the US releases inflation and gross-domestic-product data, which will give investors a clue on how the economy fared just before President Donald Trump announced country-specific levies on April 2. In recent weeks, investors have taken comfort from some recent tariff reprieves and increased bets that the Federal Reserve will cut interest rates to prevent a recession.
“Many are still calling for a recession and even lower equity levels, but we think the ‘Trump put’ is real for equities while the ‘Fed put’ is real for the economy,” said Andrew Brenner at NatAlliance Securities. “And while tops and bottoms are hard to recognize as they are happening, we think the worst is behind us.”
In the latest pivot in Trump’s trade strategy, the president signed an executive order easing the impact of his auto tariffs, preventing duties on foreign-made vehicles from stacking on top of other levies and lessening charges on parts from overseas used to make vehicles in the US.
Trump also renewed criticism of Fed Chairman Jerome Powell as he championed his economic policies and tariff regime during an event on Tuesday to mark his 100th day in office. Trump said China deserved the steep tariffs he imposed on their exports and predicted Beijing could find a way to reduce their impact on American consumers.
In Asian earnings, Co.’s chip division reported better-than-expected profit after Chinese customers rushed to stockpile supplies ahead of US tariffs.
Four of the so-called Magnificent Seven – Microsoft Corp., Apple Inc., Meta Platforms Inc. and Amazon.com Inc. – are also due to report earnings this week. Analysts expect the group — which also includes Google-parent Alphabet, Tesla Inc. and Nvidia Corp. — to deliver an average of 15% profit growth in 2025, a forecast that’s barely budged since the start of March despite the flareup in trade tensions.