Market Highlights 💡 - 18 April 2025

Wall Street Ends Mixed as Rate Watch Continues; Asian Markets Rise on Trade Optimism

Indices:

🇺🇸 S&P 500: +0.13%

🇺🇸 Nasdaq: -0.13%

🇪🇺 STOXX 600: -0.11%

🇯🇵 Nikkei 225: +1.35%

🇭🇰 Hang Seng: +1.61%

🇨🇳 CSI 300: -0.01%

🇸🇬 Straits Times Index: +1.58%

US stocks closed mixed, with the S&P 500 edging up 0.1% and the Nasdaq slipping 0.1%. Strong performances from Eli Lilly and Apple helped offset investor caution over interest rates and US-Japan trade talks.

For the week ending April 12, 2025, US initial jobless claims fell by 9,000 to 215,000, beating forecasts of 225,000 and indicating a still-strong labor market. However, ongoing trade tensions and policy uncertainty are prompting businesses to remain cautious about hiring.

The European Central Bank cut its deposit rate by 25 basis points to 2.25%, marking the seventh cut in the past year, aiming to buffer against the impact of US tariffs and trade uncertainty. President Christine Lagarde reaffirmed a data-driven policy approach moving forward.

Asian stocks mostly climbed. Hang Seng rose 1.4% on hopes of new Chinese policy measures to counter tariff pressure. Nikkei 225 added 1.6%, supported by positive momentum in US-Japan trade talks.

Japan's exports in March rose 3.9% year-on-year, the sixth consecutive month of growth, though slightly below the 4.5% forecast. Imports rose 2%, resulting in a trade surplus of 544.1 billion yen, exceeding the projected 485.3 billion yen.

Upcoming Event:

Japan's Core Consumer Price Index will be released on Friday.

Things to Know Today:

1. Netflix $Netflix(NFLX)$   beat Q1 2025 expectations with 12.5% year-over-year revenue growth to 10.54 billion USD and EPS of 6.61 USD. It forecasts Q2 revenue of 11.04 billion USD. Ad-supported subscriptions now account for 55% of new users. Shares rose 2.7% after hours.

2. UnitedHealth $UnitedHealth(UNH)$   cut its 2025 earnings forecast to 26–26.50 USD per share due to rising medical costs, especially in its Medicare Advantage program. Shares plunged 19% pre-market, dragging other health insurers down.

3. TSMC $Taiwan Semiconductor Manufacturing(TSM)$   reported a 60% YoY jump in Q1 net profit to 11.12 billion USD, driven by strong demand from Apple and Nvidia for AI chips. Despite the beat, shares are down over 20% YTD due to US tariff threats. TSMC plans up to 42B USD in capital spending and 100B USD investment in the US.

4. Eli Lilly's $Eli Lilly(LLY)$  weight-loss drug showed promising results in a 40-week trial with type 2 diabetes patients, delivering an average 7.9% weight reduction. Shares jumped 16%, while rival Novo Nordisk dipped. Global regulatory approval is targeted by year-end 2025.

5. Chinese tea brand Chagee $Chagee Holdings Limited(CHA)$   successfully IPO in the US, raising 411 million USD at a $5.1 billion valuation. It issued 14.7 million ADS at $28 each. Its core business isn't reliant on cross-border trade, lessening tariff impact.

Key Takeaway:

With US markets closed Friday, all three major indexes posted their third weekly loss in the past four weeks.

@Daily_Discussion  @TigerStars  @Tiger_comments