The Pulse: Global Economic and Market News for Thursday, April 24, 2025

Global Economic and Market News — April 24, 2025

Markets worldwide responded to a volatile mix of policy signals, economic data, and shifting trade rhetoric on Thursday, April 24, 2025. Investors weighed the International Monetary Fund’s (IMF) sharp downgrade of global growth, ongoing uncertainty over U.S. tariffs, and a strong rally in U.S. equities as technology stocks led gains. Here’s a comprehensive look at today’s top economic and market developments.

IMF Warns of Slowing Global and U.S. Growth Amid Tariff Uncertainty

The IMF’s latest World Economic Outlook, released this week, projects global economic growth of just 2.8% in 2025—down from 3.3% in January and the weakest pace in years. The Fund cut its U.S. growth forecast to 1.8%, nearly a percentage point below its earlier estimate, and flagged a 40% chance of a U.S. recession this year. IMF Chief Economist Pierre-Olivier Gourinchas called the current environment “a new era,” citing the highest U.S. tariffs in a century and heightened global uncertainty as significant headwinds. China’s growth outlook was also revised down to 4%. The IMF’s report underscores the widespread impact of tariffs, with nearly all countries affected by higher U.S. import taxes and retaliatory moves from trading partners like China, which has imposed 125% duties on U.S. goods178.

U.S. Stock Market Rallies for Third Consecutive Day

Despite the gloomy growth outlook, the U.S. stock market continued to perform well, with the S&P 500 gaining 1.6%, the Dow Jones Industrial Average up 1%, and the Nasdaq Composite surging over 2%. All seven “Magnificent Seven” mega-cap tech stocks posted gains, driving the market higher. The rally was fueled by renewed optimism that President Trump may seek a trade deal with China and speculation that the Federal Reserve could cut interest rates as soon as June if economic data justifies it. Cleveland Fed President Beth Hammack said a rate cut is “on the table,” contingent on forthcoming data. The S&P 500 is on track for its third straight day of gains, up more than 4% over the last three sessions26.

Tariff and Policy Uncertainty Still Cloud Outlook

While markets cheered the prospect of tariff relief, the policy outlook remains highly uncertain. President Trump has alternated between criticizing Fed Chair Jerome Powell and hinting at possible tariff reductions. At the same time, China has demanded the complete removal of U.S. tariffs and denied that formal negotiations are underway. However, there is still hope as the potential for a U.S.-China trade deal remains on the table. The Federal Reserve’s latest commentary and market pricing suggest traders expect as many as four rate cuts in 2025, with the first likely in June. However, business surveys and the Fed’s Beige Book indicate that firms face rising tariff costs and attempt to pass these on to consumers, even as demand remains tepid in some sectors346.

Global Markets and Sector Highlights

European and Asian stock markets were mixed, with Japan’s Nikkei rising 0.5% and Germany’s business sentiment improving. In India, benchmark indices snapped a seven-day winning streak, closing lower amid broad-based selling, though the pharma and metals sectors showed resilience56. Oil prices rebounded slightly after recent declines, while gold prices approached record highs, closing at $3,340 per ounce as investors continued to seek safe havens6.

Disclosure

This article contains forward-looking statements based on current expectations as of April 24, 2025. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth herein. The economic and market analyses presented are based on various assumptions and may not prove accurate. Investors are cautioned not to place undue reliance on forward-looking information.

The information provided is for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy, or investment product. The article references third-party information from various news sources; while efforts have been made to ensure accuracy, reliability cannot be guaranteed.

Market data mentioned is as of April 24, 2025, and is subject to change. Past performance is not indicative of future results. Readers are advised to conduct their own research and consult with qualified financial professionals before making investment decisions.

Sources

• AP News: https://www.ap.org/news-highlights/spotlights/2025/us-and-global-economic-outlook-deteriorates-in-trump-trade-war-imf-says/
• Yahoo Finance: https://finance.yahoo.com/news/live/stock-market-today-rally-resumes-as-nasdaq-sp-500-dow-gain-for-third-day-in-a-row-133035619.html
• San Francisco Fed: https://www.frbsf.org/research-and-insights/publications/fedviews/2025/04/sf-fedviews-april-24-2025/
• The Capital Spectator: https://www.capitalspectator.com/macro-briefing-24-april-2025/
• Liquide Blog: https://blog.liquide.life/post-market-summary-24th-april-2025/
• Reuters: https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-24/
• IMF Blog: https://www.imf.org/en/Blogs/Articles/2025/04/22/the-global-economy-enters-a-new-era
• The New York Times: https://www.nytimes.com/2025/04/22/us/politics/imf-world-bank-meetings-trump.html

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