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Market Commentary - Foreign Markets

Major indices soar as market reacts to potential government shutdown avoidance and strong sector performances while global stocks also see gains. Treasury yields rise as bonds lose ground.

US Stocks Surge Amid Positive Sentiment, Steel & Brokerage Stocks Lead the Way

17-Mar-2025, 11:43
The Nasdaq soared 451.07 points or 2.6% to 17,754.09, the S&P 500 surged 117.42 points or 2.1% to 5,638.94 and the Dow jumped 674.62 points or 1.7% to 41,488.19.

Positive sentiment may also have been generated in reaction to news the U.S. is likely to avoid a government shutdown after Senate Minority Leader Chuck Schumer, D-NY, said he would vote to advance a Republican spending bill funding the government through September. While Democrats oppose the bill, Schumer argued allowing President Donald Trump to take even much more power via a government shutdown is a far worse option. Meanwhile, traders largely shrugged off a report from the University of Michigan showing a substantial deterioration in consumer sentiment and a surge by inflation expectations in the month of March.

Steel stocks performed best, resulting in a 4% spike by the NYSE Arca Steel Index. Brokerage stocks were significantly strong, as reflected by the 3.5% surge by the NYSE Arca Securities Broker/Dealer Index. Computer hardware stocks too were substantially strong, with the NYSE Arca Computer Hardware Index soaring by 3.5%. Semiconductor, software and banking stocks also showed notable moves to the upside amid a broad based rally on Wall Street.

Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index advanced by 0.7%, China's Shanghai Composite Index jumped by 1.8% and Hong Kong's Hang Seng Index surged by 2.1%. The major European markets also moved to the upside on the day. While the German DAX Index shot up by 1.0%, the French CAC 40 Index and the U.K.'s FTSE 100 Index both jumped by 1.1%.

In the bond market, treasuries gave back ground after turning higher over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.4 bps to 4.30%.