Federal Reserve officials suggest a rate cut in June, U.S. stocks rose in early trading, with tech stocks leading the gains.

Taiwan • Business • 04/24 18:01
Federal Reserve officials suggest a rate cut in June, U.S. stocks rose in early trading, with tech stocks leading the gains.

On April 24, 2025, Federal Reserve Governor Christopher Waller and Cleveland Federal Reserve Bank President Beth Hammack hinted at a possible rate cut in June, boosting early gains in U.S. stocks. The Dow Jones Industrial Average rose 0.61%, the S&P 500 rose 1.3%, the Nasdaq rose 1.81%, and the Philadelphia Semiconductor Index rose 4.27%. Technology stocks led the gains, with TSMC's ADR rising 2.6%, Tesla up 5.37%, and Nvidia rose 2.81%. Expectations for a rate cut intensified in the market, with the 10-year U.S. Treasury yield dropping to 4.325%.

Key Updates

04/25 03:04

Strong Rebound in U.S. Stocks: Trump's Put Option Signal and Shift in U.S.-China Trade Rhetoric Drive Tech Stocks Up

On April 24, 2025, the U.S. stock market surged across the board, with the four major indices hitting recent highs, led by technology stocks. The market was buoyed by the "Trump put" concept, a financial market belief that Trump would step in to stabilize the market during times of volatility. The White House adopted a more conciliatory tone regarding U.S.-China trade negotiations, despite China's denial that negotiations are ongoing. The stock prices of AI chip leader Nvidia and other tech giants rose. Trump denied not having discussed tariffs with China, emphasizing that there has been contact between the two sides.

04/25 02:34

U.S. stocks have rallied for three straight days: Dow Jones breaks through 40,000 points, PHLX Semiconductor Index soars 5.63%, TSMC's ADR jumps 4.04%

The U.S. stock market has risen for three consecutive days, as the Dow Jones index surged 486.83 points on April 24, closing at 40,093.40, breaking the 40,000-point mark for the first time. Technology stocks led the gains, as the Philadelphia Semiconductor Index soared 5.63% and TSMC ADR rose 4.04%. The market was influenced by mixed signals from Federal Reserve officials about rate cuts, along with Trump's calls for rate cuts and his announcement of new tariff measures. Trump claimed to have held talks with China, but China denied that trade negotiations had begun, leaving the trade outlook uncertain.

04/25 01:01

U.S. stocks have risen for three straight days: Corporate earnings have exceeded expectations, diminishing concerns over U.S.-China trade tensions

On April 24, 2025, the U.S. stock market increased for the third straight day, with technology stocks leading the way. Despite the lack of progress in U.S.-China trade talks and persistent tariff uncertainties, corporate earnings surpassed expectations, fueling investor optimism. The S&P 500 and Nasdaq indices climbed 2% and 2.74%, respectively, and the Dow Jones index jumped nearly 500 points. The market temporarily set aside trade war worries amid robust corporate profits and expectations of potential Federal Reserve monetary policy easing.

04/24 22:00

US stocks have closed higher for three consecutive days: all four major indices increased by over 1%, with the Dow Jones breaking through 40,000 points.

On April 24, 2025, the U.S. stock market increased for the third straight day, with all four major indices rising by more than 1%. The Dow Jones Industrial Average broke through 40,000 points, while the S&P 500 and Nasdaq indices increased by 2.03% and 2.74%, respectively. The Philadelphia Semiconductor Index jumped 5.63%. Technology and semiconductor stocks led the gains, with companies such as NVIDIA and Amazon performing strongly. Despite varied corporate earnings reports and sluggish trade negotiations, investors remained optimistic as funds flowed into the technology sector, pushing the market higher.

04/24 18:01

2025 Outlook for Mainland Chinese Stock Funds: Policy Backing and Economic Robustness, AI and High-End Consumer Sectors Take Center Stage

Since 2025, despite the pressures of trade wars and economic slowdown in the global market, China's A-share market has shown resilience, with the Shanghai Composite Index having decreased by only 1.6% as of April 23. Fund managers and foreign institutions point out that policy support, a robust economy, industrial innovation, and valuation advantages provide support for the market. The AI and high-end consumer sectors have become focal points, and the inflow of foreign capital indicates that international investors are reassessing Chinese assets. In the face of high volatility, it is recommended to invest regularly through a systematic investment plan and pay attention to the impact of US-China trade policies and China's reform progress.

04/24 18:01

Federal Reserve officials suggest a rate cut in June, U.S. stocks rose in early trading, with tech stocks leading the gains.

On April 24, 2025, Federal Reserve Governor Christopher Waller and Cleveland Federal Reserve Bank President Beth Hammack hinted at a possible rate cut in June, boosting early gains in U.S. stocks. The Dow Jones Industrial Average rose 0.61%, the S&P 500 rose 1.3%, the Nasdaq rose 1.81%, and the Philadelphia Semiconductor Index rose 4.27%. Technology stocks led the gains, with TSMC's ADR rising 2.6%, Tesla up 5.37%, and Nvidia rose 2.81%. Expectations for a rate cut intensified in the market, with the 10-year U.S. Treasury yield dropping to 4.325%.

04/24 13:31

CNBC host Jim Cramer breaks down the 10 key events in the stock market in the US on April 24, 2023.

On April 24, 2025, CNBC's "Mad Money" host Jim Cramer highlighted the top ten events in the U.S. stock market for that day, ranging from earnings reports of pharmaceutical giants to those of tech leaders, industry trends, and policy impacts, highlighting the market's sensitivity to tariff policies, corporate earnings, and macroeconomic uncertainties. The events included stalled U.S.-China trade negotiations, Bristol Myers Squibb's strong earnings but setbacks in drug trials, Merck's downward revision of its financial forecasts, ServiceNow's outstanding performance, and IBM's undervalued earnings report.

04/24 11:04

Trump's return to the White House puts pressure on US stocks: S&P 500 records its worst performance for the same period in history, the dollar depreciates by 5.52%

After President Trump returned to the White House in January 2025 for his second term, the financial markets reacted swiftly to his policies. The S&P 500 index fell by about 10% within the first 94 days of his second term, marking the worst performance for any president in the same timeframe since 1928. A survey by the American Association of Individual Investors showed that the bearish sentiment exceeded 50% for nine consecutive weeks, setting a record for the longest streak of pessimism in history. The US Dollar Index depreciated by a cumulative 5.52% since Trump returned to office, the worst among all presidents during the same period, indicating the financial market pressures faced at the start of Trump's second term.

04/24 01:00

The easing of US-China trade tensions and policy shifts has invigorated Wall Street stocks, leading to consecutive rebounds.

On April 23, 2025, the U.S. stock market rebounded for the second day in a row as the easing of U.S.-China trade tensions and the stability of Federal Reserve policies boosted investor sentiment. The Dow Jones Industrial Average rose over 400 points, with the S&P 500 and Nasdaq indices also moving higher. Trump softened his stance on tariffs and the appointment of Federal Reserve Chairman Jerome Powell, leading tech stocks to drive the gains. Although intraday gains hit historical highs at one point, some gains were lost by the close, indicating that the market remains sensitive.

04/23 21:59

U.S. tech giants to repurchase over $500 billion in shares in 2025, showcasing their financial resilience in the face of adversity.

In 2025, facing global economic uncertainty and a correction in the tech sector, American tech companies such as Apple, Microsoft, Amazon, Alphabet, Meta, and Broadcom plan to buy back over $500 billion worth of stock. These actions showcase the companies' financial resilience amid trade pressures and market volatility, continuing their strategies of returning capital to shareholders. Apple plans to repurchase $110 billion, Alphabet is launching a $70 billion buyback and issuing dividends for the first time, and Broadcom has announced a $10 billion buyback. These buybacks are viewed as a testament to financial strength and confidence in the companies' value.

Fed Officials Signal Easing, Raising Market Rate Cut Expectations

Christopher Waller, a member of the Federal Reserve Board, stated in a Bloomberg TV interview on the 24th that if the Trump administration were to reinstate high tariffs, leading to increased layoffs and a rise in unemployment, he would support a rate cut to protect the labor market. He noted, "If the labor market deteriorates significantly, I think it's important to intervene from the perspective of the Fed's employment mandate."

On the same day, Cleveland Fed President Beth Hammack told CNBC that if clear and sufficient economic data becomes available before June, the Fed might take action that month. She ruled out a rate cut in May but emphasized that once the direction is clear, the Fed will act swiftly.

These statements have significantly increased market expectations for a rate cut in June. The interest rate swap market showed that the probability of a rate cut in June rose to 65% at one point. Meanwhile, the yield on the U.S. 10-year Treasury note fell to 4.325%, reflecting investors' reassessment of future interest rate trends.

Major U.S. Stock Indices Rise in Early Trading, Led by Tech Stocks

Spurred by Fed officials' remarks, the three major U.S. stock indices rose across the board in early trading on the 24th. The Dow Jones Industrial Average rose 243.24 points, or 0.61%; the S&P 500 Index rose 69.97 points, or 1.3%; the Nasdaq Index rose 302.7 points, or 1.81%; and the Philadelphia Semiconductor Index surged 170.2 points, or 4.27%.

Tech stocks performed particularly well. TSMC's ADR increased by 2.6% to $159.02 per share. Tesla's stock jumped 5.37% to close at $250.74, despite its first-quarter earnings falling short of expectations, as CEO Elon Musk promised to refocus on company operations, boosting market confidence. Nvidia's stock increased by 2.81% to $102.71, benefiting from continued market attention on AI chip demand.

Other tech giants also generally rose. Apple increased by 0.62%, Google by 1.47%, Meta by 1.59%, Amazon by 2.25%, and Microsoft by 2.63%. The broad rise of tech giants was the main driver behind the upward movement of the Nasdaq and S&P 500 indices.

Semiconductor Sector Strongly Rebounds, Led by TSMC and Nvidia

The Philadelphia Semiconductor Index surged 3% in early trading, reflecting market optimism towards the tech and chip industries. TSMC's ADR rose 1% to $159.02, becoming one of the key drivers of the index's rise. Nvidia benefited from news of Chinese companies snapping up its H20 AI chips, with its stock jumping over 2%.

Other semiconductor components also performed well. Lattice Semiconductor (LSCC) rose 8.9%, Microchip Technology (MCHP) rose 7.49%, ON Semiconductor (ON) rose 5.87%, Texas Instruments (TXN) rose 5.21%, and Marvell Technology (MRVL) rose 4.91%. The strong rebound in the overall chip sector indicates continued market confidence in future tech demand.

Market Sentiment Turns Optimistic, U.S. Bond Yields and Dollar Decline

The dovish remarks from Fed officials not only boosted the stock market but also affected the bond and currency markets. The yield on the U.S. 10-year Treasury note fell to 4.325%, reflecting increased market expectations for future rate cuts. The dollar index fell to 99.14, indicating a shift of funds into risk assets and safe-haven currencies such as the yen and Swiss franc.

Against this backdrop, investors' attention to U.S.-China trade tensions has slightly decreased, shifting focus to the Fed's policy direction and corporate earnings performance. Although the Trump administration recently hinted at the possibility of re-implementing reciprocal tariffs, the market reaction has been relatively mild, indicating that while policy uncertainty still exists, the pressure on the market in the short term has been offset by rate cut expectations.

References

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