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On Liberation Day, U.S. stock markets saw initial declines, yet a wave of buying interest from investors and traders quickly emerged. This action took place despite the lack of clarity surrounding upcoming tariff policies, which are expected to be announced later today.
Support for this optimistic market movement came from recent economic data, although markets continue to navigate through an unpredictable landscape with little historical precedent for reference.
By the end of trading, the Dow Jones Industrial Average had increased by 0.6%, closing at 42,225. Meanwhile, the S&P 500 rose 0.7% to finish at 5,670, and the Nasdaq Composite surged by 0.9% to reach 17,601.
Awaiting Presidential Announcement
President Donald Trump is set to unveil his Liberation Day announcement at 4 PM Eastern Standard Time, leaving investors in a wait-and-see approach for the moment.
Reports from Barron’s suggest that the upcoming address may signal the end of an era of free trade, with tariffs possibly reaching levels not seen since 1946.
According to Professor Eswar Prasad from Cornell University, this shift indicates a forthcoming end to the current trade dynamics, exacerbated by the Trump administration’s tariff policies that have catalyzed a global wave of protectionist responses.
Prasad, who is a senior fellow at the Brookings Institution, pointed out that corporations worldwide now face a more unpredictable trade environment, even if tariff tensions diminish.
Economic Indicators: Employment and Factory Orders
The latest report from ADP indicated that private sector employment saw an increase of 155,000 jobs in March, with the previous month’s figures revised up by 7,000 to a total of 84,000 new jobs. The service sector contributed significantly, adding 132,000 positions, while manufacturing saw a growth of 24,000. Year-over-year, median annual wages increased by 4.6%, reflecting a slight dip from February’s growth of 4.7%.
The Census Bureau reported a 0.6% increase in factory orders for February, aligning closely with market expectations, while January’s growth was revised from 1.7% to 1.8%.
Louis Navellier, Chief Investment Officer at Navellier & Associates, noted that the positive ADP data contributed to waning recession fears. He highlighted that February’s factory orders marked the strongest performance since December 2023, indicating resilience in the manufacturing sector.
Navellier also observed that as trading progressed, the VIX index fell below 22, indicating reduced market volatility, and all major indexes shifted slightly into positive territory.
He remarked, “Investors seem to have positioned themselves favorably ahead of the tariff announcement, which bodes well for market sentiment.”
Tesla’s Mixed Performance
In early trading, Tesla (TSLA) experienced a 5% drop and opened lower after announcing that it had delivered 336,681 vehicles in the first quarter—below Wall Street’s expectations of approximately 378,000.
Despite falling during the day, Tesla’s shares rebounded to close 5.3% higher, following a report from Politico that indicated Elon Musk may step back from some of his responsibilities amid the political landscape.
In contrast, Rivian Automotive (RIVN) saw a decline of 5.9%, reporting a 36% drop in first-quarter deliveries to 8,640 vehicles, which met Wall Street expectations.
IPO Market: A Rollercoaster Ride
In the IPO realm, Newsmax (NMAX) soared 77.4% on Liberation Day, although it had previously reached a high of $265 just two days before. The company, which launched its shares at $10, only began trading recently.
Founded by Christopher Ruddy, a noted ally of President Trump, Newsmax aims to position itself as a competitor to Trump Media & Technology Group (DJT). After recent developments, DJT saw its stock price fall by 7.4% following a filing with the SEC that would enable a trust associated with Trump to sell approximately $2.3 billion in stock over time.
Trump Media clarified that while the shares had been registered previously, the new filing is a standard procedure to maintain compliance with regulatory requirements, noting there are currently no plans to liquidate DJT stock.
The volatility surrounding these stocks is reminiscent of sports investments, where the challenge lies in achieving sustainable returns amidst passionate market dynamics.
Similarly, CoreWeave (CRWV) shares rose by 16.7% on Wednesday, following a remarkable 41.8% increase the previous day. While still establishing itself as a key player in the AI space, its connection with Nvidia offers significant potential as the AI trend continues to evolve.
Research from Renaissance Capital indicates that investments in new stocks can enhance overall returns and mitigate risk, suggesting that investor interest in IPOs will likely persist.
As the trading landscape evolves, attention will remain focused on a series of upcoming IPOs poised to make waves in the market.
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