(Reuters) – Global markets saw modest gains on Tuesday, March 25, 2025, following a strong rally in the previous session, driven by optimism that U.S. President Donald Trump may adopt a more measured approach to tariffs. Meanwhile, the U.S. dollar retreated from a three-week high as investor sentiment shifted.
Stock Market Performance
European and U.S. markets posted slight gains, reflecting cautious optimism over trade policy clarity.
- Dow Jones Industrial Average (.DJI) rose 4.18 points (0.01%) to 42,587.50
- S&P 500 (.SPX) added 9.08 points (0.16%) to 5,776.65
- Nasdaq Composite (.IXIC) gained 83.26 points (0.46%) to 18,271.86
- MSCI’s global stock index (.MIWD00000PUS) increased 0.2% to 853.47
- Pan-European STOXX 600 (.STOXX) closed 0.67% higher, buoyed by a strong German business morale survey from the Ifo Institute
Despite recent volatility, some analysts believe that the market has bottomed out, with potential tariff resolution serving as a key factor for a sustained rebound.
Consumer Confidence Declines
A key concern remains consumer confidence, which fell in March.
Conference Board’s Consumer Confidence Index:
- Overall index: 92.9 (down 7.2 points from February)
- Current economic view: 134.5
- Future expectations: 65.2
This decline reflects persistent worries over tariffs and economic growth, according to Vinny Bleau, Director at Raymond James.
Currency & Bond Market Movements
The U.S. dollar fell slightly, with investors weighing trade policy uncertainty:
- Dollar Index fell 0.1% to 104.19, after hitting a three-week high of 104.46
- Euro edged lower to $1.0793 (-0.06%)
- Japanese yen strengthened, pushing the dollar down 0.54% to 149.88
- British pound gained 0.18% to $1.2942
U.S. Treasury yields dipped as investors assessed potential tariff impacts on Federal Reserve policy:
- 10-year U.S. Treasury yield fell 1.6 basis points to 4.315%
- Atlanta Fed President Raphael Bostic expects only one 25-basis-point rate cut in 2025
Oil Prices & Black Sea Agreements
️ Oil prices were mixed as the U.S. facilitated safe navigation agreements in the Black Sea:
- U.S. crude oil fell 0.16% to $69 per barrel
- Brent crude edged 0.03% higher to $73.02 per barrel
Outlook: What’s Next?
As markets digest tariff developments, inflation trends, and Fed policy signals, investors remain cautiously optimistic. However, consumer confidence and geopolitical uncertainties continue to pose risks to sustained market gains.
