Stock Market Update Monday April 14, 2025

Stock Market Update Monday April 14, 2025 Equities advanced modestly, with the S&P 500 closing up 0.8%, as the benchmark index settled near the midpoint of its intraday range. The session saw an early rally fade into a midday re-tracement before stabilizing into the close. On the day: SPX +0.8%, QQQ +0.7% and IWM +1.1%.

Away From Stocks: In fixed income markets, Treasurys caught a bid, with yields on the 2-year and 30-year notes retreating to 3.84% and 4.80%, respectively—marking declines of 12 and 5 basis points. Meanwhile, WTI crude held steady around $62 per barrel, reflecting a period of consolidation. Gold eased slightly to $3,211 per ounce, while Bitcoin ended marginally changed at $84,800. Volatility subsided, as the VIX fell sharply by 6.5 points to 31, signaling a pullback in investor anxiety.

Hedge funds closely watch USD/JPY due to its global market role. Carry trades profit from Japan's low rates by borrowing yen to invest in higher-yielding assets, impacting returns with USD/JPY movements. High liquidity and tight spreads allow quick, large trades. USD/JPY reflects risk sentiment: rising in calm markets, falling as a safe haven in uncertainty, informing broader trades. It hedges currency risk for U.S./Japanese assets, offsetting losses. Volatility and leverage drive speculation based on central bank policies for short-term profit. Thus, USD/JPY's carry potential, liquidity, and economic sensitivity are key for hedge fund profits and risk management. One of the many charts we observe daily.

We see the U.S. Customs and Border Protection's (CBP) choice to delay tariffs on Chinese goods as positive news. It suggests the U.S.-China trade conflict is cooling, giving time for:

Better Trade Deals: Working toward fairer agreements.

Business Adjustments: Helping U.S. companies adapt to new trade rules.

Why CBP’s Delay Helps