The S&P 500 futures are up 138 points (2.7%), Nasdaq 100 futures are up 449 points (2.6%), and Dow Jones Industrial Average futures are up 1,151 points (2.9%).
Futures linked to the S&P 500, Nasdaq 100, and Dow industrials are significantly higher. Major equity indices bounced back from session lows yesterday, with continued upward momentum as investors buy the dip.
Optimism around trade policy is growing, adding to the positive mood. Treasury Secretary Scott Bessent mentioned in an interview that if countries provide solid proposals, the U.S. could secure beneficial deals, although some tariffs might remain.
Treasury yields have increased, supporting stocks as safe-haven purchases decrease. The 10-year yield is up to 4.22%, and the 2-year yield has risen to 3.80%.
The NFIB Small Business Optimism Survey fell to 97.4 in March from 100.7.
Eli Lilly (LLY, Financial) shares rose as Goldman Sachs upgraded the pharmaceutical giant, highlighting the company's leadership in the growing anti-obesity drug market. Analyst Asad Haider upgraded LLY to Buy, citing a compelling entry point into the sector's premier topline grower. Goldman projects Eli Lilly's weight loss drug franchise to outperform consensus expectations, with the market expected to triple in size by 2030.
In the semiconductor sector, KeyBanc Capital Markets highlighted the impact of tariffs and China's resilience as factors influencing the industry. While AI demand remains strong, the sector faces mixed signals across different markets. Analysts noted that tariff-related pull-ins could provide a short-term boost, although North America and Europe show weakness.
Morgan Stanley upgraded CME Group (CME, Financial), Cboe Global Markets (CBOE, Financial), and MarketAxess Holdings (MKTX, Financial) to Overweight, citing the need for hedging and risk management amid market volatility. The bank sees exchanges as a defensive play in uncertain times, with potential for increased trading volumes.
Tesla CEO Elon Musk's appeals to President Trump to reverse new tariffs have not been successful. Trump's tariff strategy, including a potential 50% duty on Chinese goods, has raised concerns about inflation and recession risks. Musk criticized the tariffs on social media, emphasizing the benefits of international trade cooperation.
Tilray Brands (TLRY, Financial) saw its shares decline after missing revenue forecasts for the third consecutive quarter. The cannabis company revised its full-year revenue outlook downward, despite exceeding expectations with its bottom line. The company's cannabis segment experienced a decline, while its beverage alcohol and distribution segments showed growth.
Apple (AAPL, Financial) stores experienced a surge in "panic buying" of iPhones as customers feared price increases due to tariffs. Despite efforts to diversify its supply chain, Apple remains reliant on China for manufacturing. Analysts warn that a trade war could significantly impact Apple's earnings unless exemptions are granted.
Wells Fargo (WFC, Financial) stock rose after Piper Sandler upgraded it to Overweight, noting the bank's shift from defense to offense. The bank's regulatory improvements and deregulatory agenda under the Trump administration were cited as positive factors. The potential removal of an asset cap also offers growth opportunities.
Generac (GNRC, Financial) announced the launch of new high-capacity generators for the data center market, expanding its product lineup to support high-capacity applications. The new generators aim to enhance Generac's ability to serve mission-critical businesses, including telecom operators and hospitals.
Alibaba (BABA, Financial) is upgrading its AI services abroad, introducing new models and infrastructure upgrades at its Spring Launch 2025 event. The company aims to meet the growing demand for digital transformation with new AI tools and services for international customers.
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