This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
Consumer sentiment has fallen to its lowest level since 2022, according to the University of Michigan’s Survey of Consumers, which was released on March 14. Investors are feeling just as pessimistic as consumers.
According to the March editions of the CNBC Fed Survey and the Bank of America Global Fund Manager Survey, Wall Street feels similarly gloomy. On Tuesday, the economic forecasting group UCLA Anderson also issued its first-ever “recession watch” warning.
Tuesday’s sell-off mirrored the forecasters’ and poll participants’ depressing sentiment, which tempered optimism that the S&P and Nasdaq’s slump was over despite a two-session winning streak on Friday and Monday.
There doesn’t appear to be much that can improve the attitude of the economy and markets right now, as market observers anticipate no reduction at the U.S. Federal Reserve’s meeting on Wednesday.
What To Note Today
US stocks starting to decline again
On Tuesday, the sell-off in US stocks continued. The Nasdaq Composite sank 1.71%, the Dow Jones Industrial Average declined 0.62%, and the S&P 500 fell 1.07%. Following a reduction in RBC Capital Markets’ price objective for the stock, Tesla shares fell more than 5%. On Wednesday, Asia-Pacific markets were largely down. The Nikkei 225 in Japan dropped roughly 0.2% as investors evaluated the Bank of Japan’s meeting. On the other hand, Korea’s Kospi index increased by almost 0.7%.
Bank of Japan maintains rates.
Per market expectations, the Bank of Japan unanimously maintained its key policy rate of 0.5% on Wednesday. The nation’s central bank warned about “the evolving situation regarding trade” and “high uncertainties surrounding Japan’s economic activity and prices,” which analysts see as a reference to reciprocal tariffs that U.S. President Donald Trump has planned to impose on April 2.
Uncertain times ahead: Surveys
Recent studies have shown that market and economic problems are on the horizon. In the March CNBC Fed Survey, respondents increased the likelihood of a recession from 23% in January to 36%. Citing the policies of the Trump administration, the UCLA Anderson Forecast released its first-ever “recession watch” on Tuesday. Lastly, the Bank of America Global Fund Manager Survey showed the largest decline in investor mood since March 2020.
Nvidia announces new AI chips
At its GTC conference on Tuesday, Nvidia revealed Vera Rubin, the company’s next-generation graphics processing unit, which is anticipated to go on sale in 2026. It also revealed Blackwell Ultra, an update of its current series of AI chips. In a different release, Nvidia and General Motors stated they are working together to use AI services for driver-assistant systems and automobiles.
Google will acquire Wiz
Google stated on Tuesday that it has reached a “definitive agreement” to pay $32 billion in all cash for the acquisition of Wiz, a cloud security startup based in New York. The largest deal Google has ever made is anticipated to close in 2026. Brad Haller, senior partner for mergers and acquisitions at consultancy company West Monroe, said, “It’s going to be a great litmus test and bellwether for M&A in 2025.”
Trump and Putin agree on a “limited” truce
On Tuesday, Russian President Vladimir Putin and U.S. President Donald Trump reached a limited truce that will go into effect immediately. They agreed on steps towards a peace agreement to end the conflict in Ukraine. Following an at least 90-minute chat with Putin, Trump claimed in a Truth Social post, “We agreed to an immediate Ceasefire on all Energy and Infrastructure.”
U.S. Federal Reserve may not calm markets
On Wednesday, the U.S. Federal Reserve will announce monetary policy and provide an update on its forecasts for interest rates in the upcoming years. However, given the tense state of the economy and markets, the central bank may not have the knowledge necessary to soothe investors and may even frighten them further.
Other Reports
China is implementing subsidies for childcare to increase consumption. It seeks to address the nation’s sharp birth decline while releasing funds for personal indulgences. The plan, which was unveiled on Sunday, provides a framework, as is the case with many Chinese policies: “Increase support for childbirth and childrearing.” Investigate and create a system for childcare subsidies.
But Beijing is acting swiftly. Li Chunlin, deputy head of the National Development and Reform Commission’s economic planner, told reporters Monday that the National Health Commission is already creating an operational plan for childcare subsidies.
