S&P 500 notches three-day winning streak

General market commentary

US equity markets closed mostly higher on Tuesday, with the Nasdaq Composite rising 0.5% to 18,271.9 and the S&P 500 gaining 0.2% to 5,776.7, although the Dow Jones Industrial Average ended virtually flat at 42,587.5. While consumer confidence showed continued weakness, declining for the fourth consecutive month in March, the overall market seemed to brush off the news. Consumer expectations hit a 12-year low, primarily driven by growing pessimism about future business conditions and employment prospects. Despite this, other economic indicators, such as home price growth and a slight increase in home sales, suggested a less dire outlook. In the bond market, US Treasury yields fell, with the 10-year rate dipping to 4.32%, while oil prices remained stable at $69.12 per barrel.

In corporate news, Merck saw a significant drop in its share price after securing exclusive rights to develop and sell a Chinese pharmaceutical company's heart disease drug, while KB Home also declined as it lowered its housing revenue outlook due to affordability challenges. On the upside, CrowdStrike's shares rose by 3.3% following an upgrade to "buy" by BTIG. Elsewhere, European equities rose, driven by automotive shares amid reports that US tariffs on automobiles might be delayed. Meanwhile, the US dollar weakened against major international currencies.

Latest market and economic update

Asian equity markets mostly rose on Wednesday, supported by easing concerns over US trade tariffs and strong performances in tech shares, with Australian shares leading after softer inflation data boosted expectations for rate cuts. Hong Kong rebounded, while Japan’s gains were tempered by comments from the Bank of Japan on potential rate hikes, and broader regional sentiment remained cautious amid uncertainty over US trade policies.

U.S. equity futures remained steady overnight after three consecutive days of gains, with investors continuing to monitor the impact of President Trump's upcoming tariffs set for April 2. Economic data, including durable goods and GDP revisions, are expected to provide further direction, while corporate news, such as GameStop’s Bitcoin investment plans, continues to draw attention.

European equities rose on Tuesday, with the STOXX 50 gaining 0.7% to 5,450 and the STOXX 600 up 0.6%, as investors reacted to U.S. trade policy updates and improved German business confidence. While insurer Baloise surged 4% on strong profits, logistics firm Kuehne und Nagel fell 4% on weak forecasts, and retailer Kingfisher dropped 14% after reporting a decline in annual profit.

The U.S. dollar remained largely unchanged on Wednesday, trading around 104.2 on the dollar index, with cautious sentiment surrounding trade uncertainties and economic data. Against the euro, the dollar was steady, currently trading at 1.0782, as investors awaited further cues from upcoming economic reports and Federal Reserve comments.

Oil prices rose this morning, marking their sixth consecutive session of gains, supported by a sharp decline in US crude inventories and concerns over potential disruptions from US tariffs on Venezuelan oil. However, gains were limited as traders assessed the potential impact of the Russia-Ukraine peace talks, with a temporary halt in hostilities possibly reducing geopolitical risk and increasing global oil supply.

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Tesla's European sales fell by 40.1% in February, with its market share shrinking to 1.8%, amid growing competition and controversy surrounding CEO Elon Musk's political activities. Despite overall growth in the electric vehicle market, Tesla faces challenges from newer, cheaper rivals, and its declining sales come amid broader weak demand in regions like North America and China.

Anglo American is in early talks with banks about a potential IPO for its diamond unit, De Beers, as part of a broader restructuring plan outlined by CEO Duncan Wanblad. The company, which holds an 85% stake in De Beers, is pursuing a dual-track strategy to exit the diamond business, following significant write-downs and plans to divest other assets, including coal, nickel, and platinum.

Schneider Electric has announced plans to invest over $700 million in its U.S. operations by 2027, marking its largest capital expenditure in the country in 135 years, aimed at strengthening energy infrastructure, supporting AI growth, and boosting domestic manufacturing. The investment, which will create over 1,000 jobs, includes facility expansions across various states and underpins Schneider’s efforts in smart factory transformations, energy efficiency, and grid modernisation.

Activist hedge fund Engine Capital Management is preparing for a proxy fight at Lyft, nominating two directors to address the company’s declining share price performance and corporate governance issues. Despite owning less than 1% of Lyft, Engine has criticised its dual-class share structure and is pushing for changes to improve the company’s strategy.

Fitch Ratings has upgraded Bank of Valletta's Long-Term Issuer Default Rating to 'BBB' and its Viability Rating to 'bbb', reflecting the bank’s strong domestic presence, stable earnings, and sound asset quality despite its small scale and market concentration. The bank’s solid profitability, high capitalisation, and stable funding are positive factors, though potential rating upgrades are limited due to its size and concentrated operations within Malta’s small economy.

BTIG upgraded CrowdStrike’s shares to Buy from Neutral, citing improved forecast visibility and the potential for reaccelerated growth, with FY27 annual recurring revenue likely to exceed estimates. The upgrade reflects confidence in CrowdStrike’s leadership in endpoint security and expansion into cloud security and other markets, with BTIG forecasting a 25%+ annual growth through 2028.

Piper Sandler remains positive on Microsoft despite its recent share decline, viewing it as a buying opportunity, particularly given strong AI-driven Azure growth, which saw a 157% increase year-over-year. The firm highlights Microsoft's $80 billion investment in AI infrastructure, its collaboration with OpenAI, and its broad product offering as key strengths supporting long-term growth.

Morgan Stanley has upgraded Carvana to Overweight and raised its price target to $280, citing a more than 30% upside and a bull case of $400 per share, driven by the company's competitive advantages, vertical integration, and growth. Despite macro risks, the firm sees Carvana as a "generational compounder" with strong growth prospects, including a 22% revenue CAGR through 2030, and considers its current share price pullback a buying opportunity.

Bank of America double-upgraded Cloudflare to Buy from Underperform, citing strong growth potential in AI and network security, particularly in its AI-as-a-Service offering and momentum in Secure Access Service Edge. The firm raised its price target to $160 from $60, projecting a 30% compound annual growth rate by 2028, although it highlighted risks related to revenue growth acceleration and the evolving AI market.

Compass Point Research highlighted Strategy (formerly MicroStrategy) as the top choice for investors seeking Bitcoin exposure, citing its effective capital strategy and recent large-scale Bitcoin purchases. Holding 506,137 Bitcoins worth around $44 billion, the company has outperformed Bitcoin in 2025, and Compass Point expects further gains if Bitcoin breaks $93k, with Strategy likely to increase its convertible debt offerings to fund additional purchases.

Morgan Stanley raised its year-end targets for major Chinese equity indices, citing improved earnings growth and a more optimistic outlook for the economy and currency, with the MSCI China Index up 16% this year. While the bank raised its forecast for China's economic growth and the yuan, it also noted that the ongoing geopolitical tensions and potential US tariffs could weigh on market momentum, as similar views were shared by Goldman Sachs.

Upcoming data and events

Today, investors will focus on key US economic data, including durable goods for February and revised GDP figures for Q4. Additionally, several Federal Reserve officials are scheduled to speak, offering insights into the central bank's monetary policy outlook.

For more information visit https://cc.com.mt/. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning investments or investment decisions, or tax or legal advice.