To The Moon

Overview

Global markets ended the day mixed as renewed tariff announcements from US President Donald Trump introduced uncertainty across sectors. While US indices diverged, European stocks advanced on diplomatic optimism, and Asian equities saw cautious gains as regional investors assessed the semiconductor tariff impact.

US: Trade Policy Shadows Gains

US markets closed with a split performance. The Dow Jones Industrial Average $DJIA(.DJI)$  fell 0.5% and the S&P 500 $S&P 500(.SPX)$  eased 0.1%, pressured by concerns over the economic impact of Trump’s sweeping tariffs. The Nasdaq Composite $NASDAQ(.IXIC)$  managed a 0.3% rise, supported by select tech resilience despite looming import restrictions.

Europe: Diplomatic Optimism Lifts Sentiment

European equities climbed after news that Trump and Russian President Vladimir Putin are set to meet in the coming days. Germany’s DAX jumped 1.1% and France’s CAC 40 rose 0.9%, while the UK’s FTSE 100 bucked the trend, falling 0.6% amid domestic economic concerns.

Asia: Semiconductor Tariffs Drive Mixed Reactions

Asian markets broadly advanced after Trump announced a 100% tariff on semiconductor imports but exempted firms manufacturing in the US. Japan’s Nikkei 225 gained 0.6%, Hong Kong’s Hang Seng Index $HSI(HSI)$  rose 0.6%, and China’s Shanghai Composite edged up 0.1%, with chipmakers watching supply chain implications closely.

Outlook and Insights

Markets are likely to remain volatile in the near term as investors weigh the impact of protectionist US trade measures against potential geopolitical breakthroughs. While tech-related sectors may face supply chain headwinds, exemptions for domestic production could spur selective investment opportunities in US-based manufacturing. Global sentiment will hinge on the tone and outcomes of the Trump-Putin meeting.