Asian equity markets showed strength following a sixth straight day of gains for the S&P 500 index, as investor sentiment improved on optimism that corporations will navigate slowing economic growth and tariff-related disruptions.

Australian and Japanese shares opened higher, while futures in Hong Kong pointed to moderate gains, indicating a cautiously positive sentiment across the Asia-Pacific region.

Meanwhile, US stock futures edged slightly lower, weighed down by a drop in Super Micro Computer Inc. in late trading following a disappointing financial update.

Bonds and Commodities Reflect Market Caution

US Treasuries extended their rally, with 10-year yields falling for a seventh consecutive day, suggesting investors are still seeking safe havens. The US dollar remained steady after a brief strengthening earlier in the week.

On the commodities front, gold prices rose, driven by risk-off sentiment, while crude oil prices declined, reflecting demand concerns amid macroeconomic uncertainties.

All Eyes on US Inflation and GDP Data

Markets are bracing for a critical moment as US inflation and gross domestic product (GDP) data are set for release. These figures are seen as a key test of how the economy was performing just before President Donald Trump’s April 2 tariffs were announced.

The data will help investors evaluate whether the Federal Reserve is more likely to cut interest rates in response to economic slowdown concerns. Recent tariff reprieves and policy flexibility have fueled optimism that rate cuts may be deployed to avoid a recession.

Trump’s ‘Trade Strategy Pivot’ Boosts Auto Sector

In a notable move, President Trump signed an executive order that modifies his earlier stance on auto tariffs. This order aims to ease the burden on foreign-made vehicles and reduce duties on imported parts used by US auto manufacturers, thereby reducing cost pressures on the domestic automotive industry.

This strategic change could ease tensions with global car manufacturers and trading partners, reducing some of the uncertainty plaguing global markets.

Trump Criticizes Fed Chair Powell, Defends Tariffs

While marking his 100th day in office, Trump reiterated his criticism of Federal Reserve Chairman Jerome Powell, blaming him for not supporting the administration’s economic agenda through more accommodative policies.

At the same event, he defended the steep tariffs on China, asserting that Beijing might find ways to offset their impact on American consumers, hinting at continued trade resilience.

Samsung Earnings Surpass Expectations

In corporate news from Asia, Samsung Electronics Co. reported better-than-expected profits from its semiconductor division, as Chinese companies rushed to stockpile chips ahead of anticipated US trade restrictions. This development underscores how companies are adapting to tariff uncertainties by frontloading their inventories.

Upcoming Earnings from the Magnificent Seven

Investors are closely watching this week’s earnings reports from four members of the so-called “Magnificent Seven”:

• Microsoft Corp.

• Apple Inc.

• Meta Platforms Inc.

• Amazon.com Inc.

These tech giants, along with Alphabet, Tesla, and Nvidia, are expected to post an average profit growth of 15% in 2025, a forecast that has remained steady despite the rise in trade tensions.

The resilience of these companies is seen as a key pillar of the ongoing equity rally, even as the broader market contends with mixed economic signals.

Mixed Corporate Earnings Results After Bell

Not all companies have managed to dodge macroeconomic headwinds:

• Starbucks Corp. posted sales that declined faster than expected, raising questions about global consumer spending.

• Visa Inc. delivered strong earnings, beating analyst estimates and reflecting robust transaction volumes.

• Snap Inc., however, disappointed by not issuing guidance, citing macroeconomic headwinds in its advertising segment.

• Super Micro Computer Inc. released preliminary results that missed expectations, dragging down investor sentiment in after-hours trading.

Market Commentary: Is the Worst Behind Us?

Andrew Brenner of NatAlliance Securities believes that recession fears may be overstated, citing the presence of both a “Trump put” for equities and a “Fed put” for the economy. His comments reflect a growing belief that policy support will likely prevent a prolonged downturn.

Similarly, Lauren Goodwin at New York Life Investments observed that while policy risk may have peaked, uncertainty surrounding business costs and revenue visibility still leaves room for ongoing volatility.

HSBC Cuts S&P 500 Forecast Amid Caution

In a contrasting outlook, strategists at HSBC Holdings Plc revised their year-end S&P 500 target down to 5,600 from 6,700, citing the combined pressures of tariffs and softer-than-expected US economic growth.

According to Nicole Inui and her team, markets may remain stuck between recession fears and stagflation concerns until there is clarity on tariffs, Fed policy direction, and inflation momentum.

Conclusion: Optimism With a Side of Uncertainty

While Asian markets are rising on Wall Street’s optimism, the road ahead remains bumpy. Upcoming US economic data, along with a flood of earnings reports, will be crucial in determining the sustainability of the current rally.

Investors are navigating a complex environment, balancing trade policy shifts, central bank signals, and corporate earnings performance. The resilience of tech giants, combined with flexible policymaking, may keep equities afloat — but volatility remains a constant companion.

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