Nasdaq Rises as Markets Eye April 2 Tariff Risks

The Nasdaq rose nearly 0.5% on Tuesday, as markets remained cautious ahead of the April 2 US tariff deadline, with President Trump hinting some levies may not be enforced. Global equities saw modest gains—MSCI World Index was up just 0.3% and early rallies in Japan's Nikkei and Hong Kong’s Hang Seng faded by midday. European futures suggest a flat open, with traders also watching UK CPI data and a £2.2 billion defence spending boost expected from UK Finance Minister Rachel Reeves.

Equities

The FTSE 100 rose 0.3% on Tuesday, breaking a three-day losing streak, helped by strong performances in the commodities and construction sectors. The FTSE 250 also added 0.3%. Gains came amid cautious optimism that US President Donald Trump may delay or soften some of the tariffs due to be announced on 2 April.

Shell climbed 1.5% after the oil major announced it would increase shareholder distributions and scale back its capital spending plans. That came alongside continued strength in oil markets, with energy stocks broadly higher.

Construction and materials stocks rose 1.5%, led by Morgan Sindall, which surged 8.6% following a positive annual forecast. Housebuilders were lifted by the government’s £2 billion pledge to fund up to 18,000 social and affordable homes across England—helping lift the sector 0.5%. However, retailers fell 1.8% after reporting the sharpest drop in March sales volumes in eight months.

In the US, the S&P 500 edged up 0.16% to 5,776.65, the Nasdaq gained 0.46% to 18,271.86, and the Dow Jones was flat, up just 0.01% at 42,587.50. Seven of the 11 S&P 500 sectors ended higher, led by communication services, up 1.43%, and consumer discretionary, which rose 0.98%.

Apple rose 1.4%, giving the Nasdaq a boost, while Nvidia slipped 0.6%. Tesla jumped 3.45%, extending a 12% rally from the previous day, despite falling market share in Europe for a second straight month, even as the broader EV market expanded.

CrowdStrike added 3.3% after BTIG upgraded the stock to "buy" from "neutral", citing improved prospects for the cybersecurity firm. Meanwhile, KB Home dropped over 6% after cutting its full-year revenue forecast, weighing on homebuilders. The market reaction followed a drop in US consumer confidence, with the index falling to 92.9 in March—its lowest level since February 2021.

Forex & Commodities

The dollar remains uncertain, drifting around 150.55 yen after briefly falling below the 150 mark earlier in the session. Traders showed little conviction ahead of the 2 April US tariff announcement. Sterling held firm at $1.2931 as markets awaited UK inflation data and a fiscal update from the Chancellor. The euro traded at $1.0783, having stabilised following a week of gradual decline.

The dollar index, which rallied strongly from September to January, has fallen roughly 4% this quarter and was last at 104.32. In emerging markets, the Turkish lira held just below 38 to the dollar following a reassurance from the government and central bank to contain volatility. Meanwhile, the Indonesian rupiah hovered near record lows, with concerns about growth and spending weighing on sentiment.

Gold edged higher, with spot prices up 0.2% at $3,026.38 an ounce, and US futures up 0.1% to $3,030.10. Fears that new US tariffs could trigger stagflation supported the price of the non-yielding metal, which has climbed over 15% this year. Analysts at ANZ forecast gold could reach $3,200 by September, citing concerns over inflation and growth, although hawkish comments from the Federal Reserve may slow the pace of gains. Silver was steady at $33.75 an ounce, platinum fell 0.2% to $975.10, and palladium slipped 0.4% to $952.21.

Oil prices rose slightly, with Brent up 0.21% to $73.22 a barrel and WTI up 0.23% to $69.16. The gains came after US efforts to curb Venezuelan and Iranian exports, and a larger-than-expected drop in US crude inventories. API data showed a 4.6 million barrel drawdown, well above forecasts for a 1 million barrel decrease.