Markets staged a strong recovery today, with Wall Street bouncing back after two days of heavy losses. The Dow Jones Industrial Average climbed 485 points, or 1.14%, while the S&P 500 gained 1.11% and the Nasdaq Composite rose 1.46%.
The rally was driven by the White House delaying auto tariffs for one month on vehicles that comply with the United States-Mexico-Canada Agreement (USMCA). Investors saw this as a sign that President Donald Trump may be open to further trade concessions, boosting confidence across sectors.
Automakers and tech stocks lead recovery
The tariff delay lifted shares in automakers, with Stellantis jumping 10%, General Motors rising 8%, and Ford gaining over 5%. Tech stocks, which had been under pressure in recent sessions, also saw gains, with Microsoft and Tesla rallying.
Despite today’s rebound, uncertainty remains. Trump’s 25% tariffs on Canadian and Mexican imports, imposed earlier this week, continue to weigh on sentiment, with both countries threatening retaliatory measures. The administration’s tough stance on China is also keeping markets volatile.
Commodities slide amid global growth fears
In the commodities market, Brent crude oil dropped below US$70 per barrel, its lowest level in three years, as investors worried that tariffs could slow global growth and reduce oil demand. Iron ore prices also fell below US$100 a tonne after China’s latest economic stimulus measures failed to meet market expectations.
Australia to follow Wall Street higher
Here in Australia, the ASX is expected to open higher, with futures pointing to a 12-point gain. The market is set to reverse some of its previous losses, buoyed by the optimism from Wall Street’s rebound.
Meanwhile, in Europe, bond markets reacted sharply to Germany’s expected fiscal policy shift, with government bond yields rising on news that the incoming coalition government may loosen debt restrictions to fund defence spending.
