US Markets Close Mixed Amid Weak Consumer Confidence
US equity markets ended Tuesday mostly higher, with the Nasdaq Composite gaining 0.5% to 18,271.9 and the S&P 500 rising 0.2% to 5,776.7, while the Dow Jones Industrial Average remained nearly unchanged at 42,587.5.
Despite a fourth consecutive monthly decline in consumer confidence in March, the market remained resilient. Consumer expectations hit a 12-year low, driven by increasing concerns over future business conditions and employment prospects. However, economic data from the housing sector, including home price growth and a slight rise in home sales, pointed to some stability.
In the bond market, US Treasury yields fell, with the 10-year rate dipping to 4.32%, while oil prices remained steady at $69.12 per barrel.
Corporate Developments: Market Movers
- Merck shares declined after the company secured exclusive rights to develop and sell a heart disease drug from a Chinese pharmaceutical company.
- KB Home shares dropped as the company lowered its housing revenue outlook, citing affordability challenges.
- CrowdStrike shares gained 3.3% after BTIG upgraded its rating to “Buy”.
- European stocks advanced, led by automotive shares amid reports that US tariffs on automobiles may be delayed.
- The US dollar weakened against major global currencies.
Asian Markets Trade Higher Amid Easing Trade Concerns
Asian equity markets mostly rose on Wednesday, supported by reduced concerns over US trade tariffs and strong tech sector performance.
- Australian stocks led gains, driven by softer inflation data, which boosted expectations for rate cuts.
- Hong Kong equities rebounded, while Japan’s markets saw smaller gains, as Bank of Japan comments on potential rate hikes kept investors cautious.
- Broader regional sentiment remained cautious, given uncertainty over US trade policies.
Meanwhile, US equity futures remained steady overnight after three consecutive days of gains, with investors monitoring President Trump’s upcoming tariffs set for April 2. Key economic data, including durable goods orders and GDP revisions, are expected to provide further direction.
European Equities Gain as Investors React to Trade and Business Confidence Data
European stocks advanced on Tuesday, with the STOXX 50 up 0.7% to 5,450 and the STOXX 600 rising 0.6%, as investors reacted to US trade policy updates and improved German business confidence.
- Baloise shares rose 4%, supported by strong profit results.
- Kuehne + Nagel declined 4%, following a weaker-than-expected earnings forecast.
- Kingfisher shares plunged 14% after the company reported a drop in annual profit.
The US dollar remained steady on Wednesday, trading at 104.2 on the Dollar Index, while the EUR/USD pair stood at 1.0782, as investors awaited economic data and Federal Reserve commentary.
Oil Prices Extend Gains on Supply and Geopolitical Factors
Oil prices rose for the sixth consecutive session, driven by:
- A sharp decline in US crude inventories
- Concerns over potential disruptions from US tariffs on Venezuelan oil
However, gains were limited, as traders assessed the potential impact of Russia-Ukraine peace talks. A temporary halt in hostilities could reduce geopolitical risk and increase the global oil supply.
Stock Movements: Analyst Ratings and Key Corporate News
- Tesla: European sales fell 40.1% in February, reducing its market share to 1.8%, amid growing competition and CEO Elon Musk’s political controversies. Despite overall growth in the EV market, Tesla also faces weaker demand in North America and China.
- Anglo American: Engaged in early talks with banks regarding a potential IPO for De Beers, as part of a broader restructuring plan.
- Schneider Electric: Announced a $700 million investment in its US operations by 2027, marking its largest US capital expenditure in 135 years. The investment will focus on energy infrastructure, AI growth, and domestic manufacturing.
- Lyft: Activist hedge fund Engine Capital Management is preparing for a proxy battle, nominating two directors to address corporate governance concerns and share price performance.
- Bank of Valletta: Fitch Ratings upgraded its Long-Term Issuer Default Rating to ‘BBB’ and its Viability Rating to ‘bbb’, citing strong earnings, stable capitalization, and a solid domestic presence.
- CrowdStrike: BTIG upgraded the stock to “Buy”, citing improved forecast visibility and potential growth exceeding estimates.
- Microsoft: Piper Sandler remains positive, highlighting AI-driven Azure growth, an $80 billion AI investment, and strategic OpenAI partnerships.
- Carvana: Morgan Stanley upgraded the stock to “Overweight”, raising its price target to $280 and noting a bull case of $400 per share. The firm cited Carvana’s vertical integration and long-term growth potential.
- Cloudflare: Bank of America upgraded Cloudflare to “Buy” from “Underperform”, raising its price target to $160, forecasting a 30% CAGR through 2028.
- Strategy (formerly MicroStrategy): Compass Point Research highlighted the company as the top choice for Bitcoin exposure, citing its holdings of 506,137 Bitcoins valued at $44 billion. The company has outperformed Bitcoin in 2025 and is expected to increase its convertible debt offerings to fund further Bitcoin purchases.
- Chinese Equities: Morgan Stanley raised year-end targets for major Chinese indices, citing improved earnings growth and a stronger yuan outlook. Goldman Sachs shared a similar positive view, though analysts noted that geopolitical risks and potential US tariffs could weigh on momentum.
Key Economic Events and Data Releases
Investors are focusing on upcoming US economic data, including:
- February Durable Goods Orders
- Revised Q4 GDP Figures
- Speeches from several Federal Reserve officials, offering insights into monetary policy outlook
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