Market Snapshot: Stocks Surge, Oil Climbs, and Mortgage Rates Edge Higher Amid Shifting Sentiment

Image Source : Krish Capital Pty Ltd

Index Update

U.S. stock futures surged, extending gains from the previous session as investor sentiment improved. The rally was driven by President Trump’s assurance that he won’t dismiss Fed Chair Jerome Powell, easing concerns about political interference in monetary policy, and his more conciliatory remarks on future trade talks with China. Earnings also played a key role, with Tesla shares jumping over 7% despite weak Q1 results, as Elon Musk pledged to reduce his government involvement. AT&T shares rose around 4% on better-than-expected growth in new wireless subscribers.

Market Movers

On Tuesday, the top gainers were    GSR III Acquisition Corp. (+52.17%), followed by Orchestra BioMed Holdings, Inc (+10.21%). On the contrary  Medpace Holdings, Inc (-10.38%) and               Zions Bancorporation N.A (-9.01%) declined the most the same day.

Commodities Update

WTI and Brent crude oil futures continued their upward momentum, supported by new U.S. sanctions targeting a key Iranian figure involved in LPG and crude shipping, raising concerns about a potential drop in Iranian exports. Both benchmarks extended gains of over 2% from the prior session, with WTI nearing $65 per barrel and Brent surpassing $68. A sharp draw in U.S. crude inventories, reportedly down by 4.6 million barrels, also added to the bullish sentiment. Broader optimism was fueled by signs of progress in trade talks with India and Japan, as well as growing acknowledgment from the Trump administration that the U.S.-China trade stalemate is unsustainable.

Gold prices pulled back to around $3,310 per ounce after briefly hitting a record $3,500, as easing trade tensions and reduced worries over the Federal Reserve’s independence dampened demand for the safe-haven asset. Treasury Secretary Scott Bessent expressed confidence in a de-escalation of the U.S.-China conflict, while President Trump signaled he would not move to dismiss Fed Chair Jerome Powell. This combination of geopolitical and monetary policy clarity improved market sentiment, reducing the appeal of gold, although the metal remains up roughly 30% for the year.

Macro Update

The average interest rate on 30-year fixed-rate mortgages with conforming loan amounts ($766,550 or less) in the U.S. rose for the second straight week, reaching 6.9% for the week ending April 18, 2025, up from 6.81% the week before, according to the Mortgage Bankers Association. This marks the highest level in nearly two months, reflecting a rise in bond yields amid renewed criticism of Fed Chair Powell by President Trump.

Futures Update

U.S. stock index futures rose sharply, building on previous gains as investors responded positively to less hawkish comments from President Donald Trump regarding China and the Federal Reserve, along with a wave of corporate earnings. The Dow Jones Futures, S&P 500 Futures, and Nasdaq 100 Futures all posted notable increases. Major Wall Street indices also saw strong gains in the prior session, driven by improving market sentiment, encouraging earnings reports, and bargain hunting.

Stocks bounced back from the significant losses of Monday, and the yield on the 10-year Treasury note decreased as investors awaited Tesla's earnings and reviewed mixed results from defense companies. All major averages experienced notable gains, with the S&P 500 climbing 129.58 points (2.51%) to finish at 5287.77. From a technical standpoint, the index is currently sitting near critical horizontal support levels, suggesting a potential rebound in the near future. Additionally, the 14-period Relative Strength Index (RSI) remains below the midpoint, indicating that while the market is facing downward pressure, there may be opportunities for an upward correction. The key support level is at 5115, while resistance is identified at 5160.