Asian stocks mostly rose on Monday, while U.S. futures dropped as major U.S. tech companies prepared to announce their earnings amid the market instability triggered by President Donald Trump’s trade war. The S&P 500 futures were down 1.1%, and the Dow futures fell by 0.9%. Oil prices also saw a decline of more than $1 per barrel.
With many global markets and Wall Street closed for Easter holidays, uncertainty continues surrounding Trump’s trade war. Economists are concerned that his aggressive tariff increases could lead to a recession if sustained.
Additionally, a recent dip in the U.S. dollar has raised concerns, suggesting a potential loss of confidence in the U.S. as a secure investment haven, especially as Trump works to overhaul global trade. The U.S. dollar fell to 140.76 Japanese yen, its lowest level since September, down from 141.80 yen. Meanwhile, the euro strengthened to $1.1473 from $1.1404.
Stephen Innes of SPI Asset Management remarked that the reputational damage to the U.S. is undeniable and won’t disappear quickly.
This week, the earnings season for Big Tech’s “Magnificent Seven” begins, with companies such as Apple, Microsoft, Nvidia, Amazon, Tesla, Google’s parent Alphabet, and Meta Platforms preparing to report. Since Trump’s inauguration, these companies have seen their combined market value drop by $3.8 trillion, or 22%, as of April 20.
Tesla, which manufactures electric vehicles in Shanghai, will release its financial report on Tuesday after already revealing a 13% decrease in first-quarter car sales compared to last year.
In Japan, the Nikkei 225 index fell 1.3% to 34,279.92, driven by a lack of progress in trade talks with Trump. Japanese automakers, in particular, face a 25% tariff on exports to the U.S. The Shanghai Composite index rose by 0.5% to 3,291.73, while South Korea’s Kospi added 0.2% to 2,488.42. Taiwan’s Taiex dropped 1.5%, and India’s Sensex gained 1.1%. Markets in Hong Kong and Australia were closed.
On Thursday, the Dow industrials fell 1.3%, while the S&P 500 edged up by 0.1%. The Nasdaq composite lost 0.1%.
In the commodity markets, U.S. crude oil dropped $1.24 to $62.77 per barrel, while Brent crude fell $1.23 to $67.02. Bitcoin saw a nearly 3.5% increase, reaching around $87,580.
In the bond market, the yield on the 10-year Treasury note rose to 4.36% from 4.32% on Thursday.