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US stocks surge on easing trade tensions

US stocks rallied on Tuesday after a long holiday weekend, buoyed by easing tensions in the US-EU trade dispute and robust economic data. Asian markets showed mixed reactions midweek as investors prepared for Nvidia's earnings release, due late on Wednesday. In monetary policy news, New Zealand's central bank reduced its benchmark rate by 25 basis points to 3.25% on Wednesday, signalling a deeper easing cycle due to mounting global economic risks, particularly from US tariffs.

  • Data
  • Autore Shane Strowmatt, LGT
  • Tempo di lettura 5 minuto

Market chart
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After reopening from a long holiday weekend, US stocks saw significant gains on Tuesday, driven by easing tensions in the US-EU trade dispute and strong economic data. The Dow Jones Industrial rose by 1.8% to 42,343.65 points, the S&P 500 increased by 2.1% to 5921.54 points, and the Nasdaq 100 climbed by 2.4% to 21,414.99 points. US President Donald Trump had postponed new tariffs on EU imports to 9 July over the weekend, boosting market optimism. Nvidia shares jumped over 3% on reports of a new AI chip launch in China. The chip giant releases its quarterly figures late on Wednesday.

US consumer confidence rebounds in May

In macroeconomic data, the Conference Board reported on Tuesday that US consumer confidence increased by 12.3 points to 98.0 in May, following a decline to 85.7 in April. The Expectations Index surged 17.4 points to 72.8, reflecting improved consumer outlooks on business conditions, employment prospects, and future income. The Present Situation Index also rose by 4.8 points to 135.9. The rebound, influenced by the May 12 announcement of a pause on some tariffs on Chinese imports, saw broad-based improvements across all age, income, and political groups. However, consumers' views on job availability continued to weaken. Meanwhile, 
US durable goods orders dropped by 6.3% in April, driven by a 17.1% decline in transportation equipment orders, according to data released by the Commerce Department on Tuesday.

Swiss trade declines in April

Swiss foreign trade experienced a significant decline in April 2025, with seasonally adjusted exports dropping by 9.2% and imports by 15.6%. The primary cause was volatility in the chemical-pharmaceutical sector. Despite the decrease, exports remained high at CHF 25.2 billion, while imports saw the steepest monthly fall since April 2020, leading to a record trade surplus of CHF 6.3 billion. Notably, watch exports reached a new monthly high, while trade with the US and Europe saw double-digit declines. The Swiss Market Index added 0.2% on Tuesday.

German consumer sentiment mixed in May

Consumer sentiment in Germany showed mixed results in May, with economic and income expectations rising, but a slight decline in willingness to buy and an increase in willingness to save. The GfK Consumer Climate indicator predicts a modest rise of 0.9 points to -19.9 points for June 2025, up from -20.8 points in May. Despite the third consecutive monthly increase, consumer sentiment remains low due to uncertainties around US trade policies and economic stagnation fears. Germany’s DAX rose 0.8% on Tuesday.

EU approves EUR 150 billion arms fund

The European Union approved a EUR 150 billion arms fund on Tuesday, driven by concerns over potential Russian aggression and doubts about US security commitments. The Security Action for Europe (SAFE) scheme will use joint EU borrowing to finance defence projects and includes a strong "buy European" component. The measure was supported by 26 out of 27 EU member countries, with Hungary abstaining. This initiative follows a significant increase in EU defence spending over the past three years in response to Russia's 2022 invasion of Ukraine. The Euro Stoxx 50 increased by 0.4%.

Asian stocks mixed midweek

Stocks in the Asia-Pacific region were mixed on Wednesday as traders considered the improved tariff environment and prepared for Nvidia earnings. Japan’s Nikkei 225 was trading 0.3% higher, while Korea’s Kospi surged 1.4%. Australia’s S&P/ASX 200 was slightly lower, down 0.1%. Hong Kong’s Hang Seng Index fell 0.6% and mainland China’s CSI 300 was nearly unchanged, up 0.1%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from NVIDIA and Salesforce. Annual general meetings at Chevron, ExxonMobil, Glencore, Meta Platforms, and Vonovia.

Economic data in focus: German unemployment rate (09:55), Swiss ZEW Indicator of Economic Sentiment (10:00), Federal Reserve meeting minutes (20:00).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.