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Markets Steady as Trade Talks Progress and Earnings Drive Sector Swings

U.S. trade negotiations with Japan and Italy show progress, central banks maintain caution, and corporate earnings reveal mixed sector performance.

This photo shows a dealing room at Hana Bank in central Seoul on April 18, 2025. (Yonhap)
A woman walks down Wall Street in New York City, U.S., April 8, 2025. REUTERS/Kylie Cooper/File Photo
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Fed Chair Jerome Powell stands at a lectern during an Economic Club of Chicago event.

Overview

  • President Trump unexpectedly joined trade talks with Japan and Italy, reporting 'big progress,' offering temporary market optimism.
  • The Federal Reserve and European Central Bank emphasize cautious monetary policies, with the ECB cutting rates by 25 basis points due to trade uncertainties.
  • Eli Lilly shares surged 14% after its experimental weight-loss pill showed promising results, while UnitedHealth shares plummeted 22% following a profit warning.
  • Japan's inflation remains above the Bank of Japan's 2% target at 3.6%, influencing regional market sentiment and raising economic concerns.
  • The S&P 500 ended the holiday-shortened trading week slightly higher, while the Dow Jones and Nasdaq closed with losses, reflecting ongoing volatility.