Stock Market Update Tuesday April 22, 2025

Stock Market Update Tuesday April 22, 2025 Markets Rebound Sharply on Hopes of Trade Reconciliation U.S. equities staged a robust rally on Tuesday, buoyed by renewed optimism around potential trade de-escalation. Headlines suggesting progress in negotiations spurred risk appetite, with the S&P 500 surging 2.6%, trimming its year-to-date decline to under 10%. The broad-based rebound reflected a shift in investor sentiment, with cyclical sectors and high-beta names leading the charge.

Away From Stocks: In fixed income, price action was comparatively subdued. The 30-year Treasury yield eased three basis points to 4.88%, while the 2-year yield ticked slightly higher to 3.76%, reflecting modest curve flattening amid tempered Fed expectations. Commodities presented a mixed picture. WTI crude extended gains, advancing toward $64 per barrel, underpinned by ongoing supply-side concerns and hopes of improved global demand. Gold prices, which spiked to $3,500 per ounce during overnight trading, retrenched to $3,381, as risk-on sentiment drew flows out of safe-haven assets. Meanwhile, Bitcoin continued its parabolic ascent, holding firm around $91,000, maintaining its momentum as a speculative favorite. Volatility eased as the VIX index dipped below 31, suggesting improved investor confidence and reduced demand for downside protection.

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A key overhang continues to be the trajectory of U.S. trade policy—specifically, how the White House intends to navigate ongoing negotiations and what it will ultimately define as a “win.” The policy direction appears to hinge on a single individual’s decision in the coming week, which only amplifies the sense of unpredictability.

Encouragingly, Vice President Pence and Indian Prime Minister Modi jointly announced a framework for a U.S.–India trade agreement, citing meaningful progress in bilateral discussions. The language used was notably constructive, indicating a firm commitment to reaching a deal. This news appeared to provide a tailwind into the close, helping equities recover from intraday losses.

India’s active participation in trade talks, even amid cautionary signals from China, is notable. While China remains the world’s second-largest economy, India’s GDP is comparable to Japan’s and exceeds that of many European economies—positioning it as a strategically important player in the global economic order.