Gold Pushes Into Upside Reversal as Markets Climb 04/12/2025

HOT stories for today

Market wrap:

• U.S. stocks advanced Wednesday after weaker-than-expected labor data bolstered expectations that the Federal Reserve will cut interest rates next week. The Dow rose 0.9%, gaining 408 points to close at 47,882.90. The S&P 500 added 0.3% and the Nasdaq Composite edged up 0.2%. Sentiment improved after ADP reported a surprise 32,000 decline in private payrolls for November, compared with economists’ forecasts for a 40,000 increase. The softer reading reinforced bets on a rate cut at the Fed’s Dec. 10 meeting, with futures pricing in an 89% probability, according to CME’s FedWatch. Financials outperformed on prospects for lower borrowing costs, lifting shares of Wells Fargo and American Express.
• Tech lagged, with Microsoft falling as much as 2.5% after a report by The Information said it was trimming AI-related software sales quotas,  a claim the company later denied. Nvidia, Broadcom, and Micron retreated in sympathy. Bitcoin’s rebound from earlier losses offered some support to risk sentiment. Investors also monitored comments from Treasury Secretary Scott Bessent, who said the administration could reinstate its tariff agenda under authorities granted by the 1962 Trade Act, even if the current tariff structure faces setbacks at the Supreme Court. Gold is pulling back after testing the $4,000 level, with a major resistance zone sitting near $4,270. Analysts say a move toward $5,000 is possible, but sentiment will need to strengthen before bulls can retake control.

Bessent Vows Tariffs Will Stay, Court or Not

• Treasury Secretary Scott Bessent said the administration could re-create its tariff framework regardless of how a pending Supreme Court ruling unfolds, citing broad authority under sections 301, 232 and 122 of the 1962 Trade Act, as well as the International Emergency Economic Powers Act.
•  Speaking at the DealBook Summit, he said those tools would allow the administration to implement its tariff agenda “permanently.” Bessent pointed to China as evidence of success, saying fentanyl-related tariffs had prompted a “robust effort” by Beijing to curb shipments. He also declined to comment on President Trump’s choice for the next Federal Reserve chair, noting that the broader FOMC voting structure limits the role's influence. Trump has suggested the decision could slip into early next year.

Stocks on the move:

• Salesforce (CRM) led the lineup. The cloud-software giant posted adjusted earnings of $3.25 per share and revenue of $10.26 billion, up 9% from a year earlier. Shares initially jumped more than 6% before paring gains. The company raised its full-year EPS outlook and issued an upbeat revenue forecast, citing resilient demand for its AI and data products.
• Snowflake (SNOW) slipped after hours despite solid results. The data-platform provider reported robust product revenue, but investors were disappointed by the lack of a meaningful upgrade to its full-year outlook. The stock had gained 11% in the two weeks leading into the report, tempering the reaction.
• C3.ai (AI) delivered a narrower-than-expected adjusted loss of 25 cents per share, with revenue of $75.1 million slightly above consensus. Guidance was in line with expectations, though not strong enough to spur fresh buying.
• UiPath (PATH) beat estimates on both earnings and revenue and surged 8% after hours. The automation-software firm issued stronger-than-expected revenue guidance for the coming quarter, supported by continued growth in annual recurring revenue.

Watchlist: NVDA, MRVL, CRM, SNOW, AI, PATH, FIVE, MSFT

Key Economic Events Today:

EST time

07:30 am: USD Challenger Job Cuts
08:30 am: USD Unemployment Claims
12:00 pm: USD FOMC Member Bowman Speaks


Earnings

BMC (Before Market Open): Toronto Dominion Bank (TD), Bank of Montreal (BMO), Kroger Company (KR), Dollar General (DG)

AMC (After Market Close): Hewlett-Packard (HPE), Ulta Beauty (ULTA), Samsara Inc (IOT)


The TEFS Analyst team wishes you a successful day!