New Delhi, 22 April (H.S.): Amid rising trade tensions, President Donald Trump increased his public rebuke of Federal Reserve Chair Jerome Powell, calling him a major loser for not reducing interest rates more swiftly. This criticism alarmed financial markets already stressed by trade war uncertainties, resulting in significant losses across US stocks and raising fears about the Federal Reserve's political independence. Concurrently, the US dollar fell against other currencies while Treasury bond yields rose, indicating market anxiety about potential Fed actions perceived as politically motivated.
Asian stocks opened lower following Trump’s remarks, leading to a selloff in US assets. However, early Asian trading showed signs of stabilization, as US equity-index futures gained, and the dollar index recovered slightly from a 15-month low. The US-China trade dispute worsened, with Beijing warning other nations against agreements that harm Chinese interests. Additionally, the Ministry of Finance imposed a 12% provisional safeguard duty on certain steel products to protect its domestic sector amid increased imports. In the Indian markets, the Nifty surged over 2400 points in recent sessions, indicating strong bullish sentiment.
The Nifty Private Sector Bank gauge has surged by 11% year-to-date, outperforming public sector banks, which have only seen a 1% rise. On Monday, the Nifty Bank achieved record highs. However, oil prices increased on Tuesday, with Brent crude futures rising to $66.77 a barrel, driven by investors covering short positions despite ongoing economic concerns from tariffs and U.S. monetary policy impacting fuel demand. Both Brent and U.S. West Texas Intermediate crude benchmarks fell over 2% on Monday amid positive developments in U.S.-Iran nuclear deal negotiations, easing supply fears. Experts anticipate continued positive trends, although consolidation may occur at the Nifty 50 support level of 24,000, with resistance at 24,550.
Asian markets declined in response, with Japan's Nikkei 225 down 0.4%. Overall, global sentiment soured as Trump’s remarks raised concerns over the Federal Reserve's independence and potential economic slowdown.
On Tuesday, April 22, 2025, major US stock indices faced significant declines, with the Dow Jones Industrial Average dropping 971.82 points (2.48%) to close at 38,170.41. The S&P 500 fell by 124.50 points (2.36%) to 5,158.20, while the Nasdaq Composite decreased by 415.55 points (2.55%), ending at 15,870.90. Meanwhile, the US dollar index traded at 98.454, hovering near its three-year low, having slipped to 97.923 in the previous session.
In India, benchmark indices Sensex and Nifty 50 are expected to open lower reflecting global market trends. The Sensex previously rose by 855.30 points (1.09%) to 79,408.50, and Nifty 50 increased by 273.90 points (1.15%) to 24,125.55.
Additionally, several companies, including HCL Technologies, AU Small Finance Bank, and Waaree Energies, will report their Q4 earnings today as part of a busy week where over 100 firms are scheduled to announce financial results.
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Hindusthan Samachar / Jun Sarkar
