Monday – Tariff Relief Lifts Tech, but Uncertainty Persists
The week opened on a moderately optimistic note in global markets after US President Donald Trump announced the suspension of tariffs on smartphones and electronic devices. The measure benefited companies with strong exposure to China — such as Apple, Nvidia, and Dell — boosting Wall Street futures and Asian stock exchanges. Despite the temporary relief, uncertainty remains: Trump reiterated that technology products remain subject to a 20% tariff and signalled that semiconductors may soon be targeted.
In addition to trade tensions, the week’s agenda was shaped by expectations surrounding monetary policy decisions in major economies. The European Central Bank (ECB) was preparing for a new interest rate announcement, while the central banks of Canada, China, South Korea and Turkey were also under close watch. Speeches from Federal Reserve officials — particularly Chair Jerome Powell — were considered key to gauging the direction of US monetary policy. The week also marked the beginning of the IMF Spring Meetings, alongside key data releases such as the eurozone Consumer Price Index (CPI), and US retail sales and industrial production figures.
On the corporate front, earnings season in the US kicked off with results from major banks and tech firms. Commodities such as oil and iron ore also advanced, driven by expectations of Chinese stimulus and a gradual recovery in global demand.
Tuesday – Markets Rise on Tariff Relief and Central Bank Outlook
US markets traded slightly higher, buoyed by the temporary tariff suspension announced by Trump and stable inflation expectations according to the New York Fed’s survey. The White House also launched investigations into pharmaceutical and semiconductor imports, suggesting tariffs could soon be extended to those sectors.
Bank of America and Citigroup released their quarterly results, reporting gains in equities trading but warning of potential risks tied to ongoing trade disputes. Goldman Sachs had already flagged concerns over a possible global recession the day before.
In the luxury sector, French group LVMH disappointed with a revenue decline, pressured by slowing consumption in the US and China. Markets interpreted this as a warning signal for the broader real economy amid persistent trade tensions.
Wednesday – Tech Under Pressure and All Eyes on Powell
Wall Street futures fell following news that the US Commerce Department had restricted exports of artificial intelligence chips to China. The decision directly impacted Nvidia, which warned of multi-billion-dollar losses from the halted sale of its H20 chip. Other affected firms included AMD, Intel and TSMC. Regulatory tensions heightened caution across markets — particularly in the tech sector.
Investors also closely watched US retail sales data as a key gauge of consumer behaviour ahead of new tariffs. In Europe, chipmaker ASML expressed uncertainty about the rest of the year’s outlook.
All attention then turned to Jerome Powell’s speech. The Fed Chair adopted a cautious tone amid global uncertainties, reaffirming a “wait and see” approach in light of geopolitical risks. The message was interpreted as a sign that interest rate cuts may be postponed until greater clarity emerges.
Meanwhile, China’s Q1 GDP grew 5.4% year-on-year, above expectations, but showed signs of slowing on a quarterly basis — indicating that trade tensions with the US are beginning to weigh on activity.
Thursday – ECB Rate Cut, IMF Comments and Renewed Tensions with China
Thursday brought pivotal developments. The European Central Bank confirmed a 25 basis point rate cut, lowering the benchmark rate from 2.50% to 2.25%. ECB President Christine Lagarde expressed concern over the impact of US tariffs on the eurozone’s economic performance. European equities reacted with slight losses, while US markets moved in mixed directions.
Geopolitical tensions escalated again as President Trump warned chipmaker TSMC — the world’s leading semiconductor manufacturer — that it could face tariffs of up to 100% if it failed to relocate part of its production to the US. In response, Chinese President Xi Jinping called for unity among trade partners to defend supply chain stability. The confrontation reignited global fears of economic decoupling.
Among corporate highlights, Netflix and American Express reported their quarterly earnings. Meanwhile, French luxury house Hermès underperformed expectations, adding pressure to the luxury sector. In commodities, both oil and iron ore continued to climb. Brent rose 0.75% and WTI gained 0.65%, supported by signs that Beijing may be open to dialogue with Washington.
Weekly Overview
The week was defined by a series of events that brought both brief relief and renewed uncertainty. The initial optimism driven by the temporary suspension of US tariffs on electronic products soon gave way to instability, as Washington expanded scrutiny over semiconductors and pharmaceuticals.
Throughout the week, Trump’s aggressive trade strategy, equity market volatility, and warnings from major tech and luxury firms highlighted the fragility of the global economic environment. Powell’s remarks and those from other Fed officials reinforced the message that monetary policy will remain cautious — yet reactive to external developments.
Commodities reacted positively to signals of potential Chinese stimulus and investors’ search for stability. However, economic data offered mixed signals, with stronger-than-expected growth in China offset by slower quarterly momentum and persistent uncertainty in both the US and Europe.
Looking ahead, the coming days will require continued focus on the trade narrative, corporate earnings and evolving central bank communication — all of which remain central to the ongoing repricing of global risk.
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