Global markets rise for the second day as US investors await housing data

Global markets climbed for the second day in a row on Tuesday as traders waited for US housing data and a Federal Reserve policy update.

Stocks across Asia and Europe tracked Wall Street’s gains, while investors kept an eye on interest rates, consumer spending, and the latest numbers on home construction in the United States.

The S&P 500 added 0.64%, closing at 5,675.12, while the Nasdaq Composite rose by 0.31% to end at 17,808.66. The Dow Jones Industrial Average jumped 353.44 points to 41,841.63, lifted by strong performances from Walmart and IBM, according to data from CNBC.

Investors were also watching gold, which surged past $3,000 per troy ounce for the first time in history.

Treasury yields dip as investors brace for Fed decision

US Treasury yields moved lower ahead of the Federal Reserve’s two-day policy meeting, which began Tuesday. The 10-year yield fell slightly to 4.3%, and the 2-year yield dropped to 4.042%.

The Fed is expected to keep its benchmark borrowing rate at 4.25% to 4.50%, but investors will be listening to Jerome Powell’s remarks for any hints of policy changes.

“Absolutely, between now and April 2, there’ll be some uncertainty,” said Kevin Hassett, director of the National Economic Council, referring to Trump’s planned tariff decisions.

The Organisation for Economic Co-operation and Development (OECD) had already revised its US growth forecast downward, citing uncertainty from shifting trade policies.

February’s housing starts and building permits data will be released Tuesday, followed by existing home sales figures on Thursday. Investors will be looking for signs that higher interest rates are slowing demand. A weak housing market could fuel new fears of a recession.

Asia-Pacific and European markets follow Wall Street higher

Asian markets mirrored Wall Street’s rally on Tuesday. The Hang Seng Index in Hong Kong jumped 2.29%, driven by a 12.11% surge in Baidu after the company announced two new artificial intelligence models, and China’s CSI 300 surged by 0.27%, closing at 4,007.72, according to CNBC’s data.

Japan’s Nikkei 225 rose 1.20% to 37,845.42, while the Topix index advanced 1.29% to 2,783.56. Investors were watching Japan’s central bank, which kicked off its two-day monetary policy meeting. The Bank of Japan is expected to maintain its 0.5% interest rate, aligning with the Fed’s stance.

In South Korea, the Kospi index ended flat at 2,612.34, while the Kosdaq climbed 0.27% to 745.54. Australia’s S&P/ASX 200 held steady at 7,860.40, paring earlier gains. Over in India, the Nifty 50 gained 1.20%, and the BSE Sensex was up 1.07% by midday.

Gold breaks all-time high as Trump’s tariffs fuel uncertainty

Gold prices hit a new all-time high, crossing $3,004 per troy ounce on Friday as investors piled into safe-haven assets. Prices have climbed 14% this year, making gold one of the best-performing assets since Trump returned to office.

Trump’s shifting tariff policies have created market volatility, forcing investors to seek protection. The US-China trade war, inflation fears, and concerns about a global economic slowdown have all contributed to the rush into gold.

Banks have scrambled to revise their price targets. Citibank, Goldman Sachs, Macquarie, and RBC all raised their gold price forecasts in response to the rally. Since 2000, gold prices have surged tenfold, outperforming major stock indices.

At the same time, investors have been tracking the US Treasury Department, which has been flooded with record-high gold reserves. Since Trump’s re-election, over $70 billion worth of gold has been transported into New York, signaling a flight to safety.

Investors and businesses have struggled to keep up with Trump’s rapidly changing tariff policies, adding to concerns about economic stability. The White House is set to unveil its latest “reciprocal” tariffs on April 2, a move that could impact global trade and supply chains.

Hassett confirmed that the tariff situation will remain uncertain for the next few weeks. “Absolutely, between now and April 2, there’ll be some uncertainty,” he said in an interview on Squawk Box. However, he assured that by then, there would be “absolute clarity” on the administration’s trade stance.

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