SOTS 2nd Hour: Another Day, Another Trade Headline: China’s Latest Moves + What It Means For Stocks and Bonds 4/11/25

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Sara Eisen (0:58)

Good Friday morning, everyone. Welcome to Squawk on the Street. I'm Sara Eisen with David Faber and Mike Santoli, live as always from Post 9 of the New York Stock Exchange. Carl's on assignment. What a week. And here we are with the S&P 500 actually higher right now. We've reversed an earlier decline. We're all over the place. The Dow is just negative. It's positive. Can't make up its mind. The Nasdaq is a little bit higher.

David Faber (1:19)

Cats and dogs living together. It's just crazy.

Sara Eisen (1:22)

It's crazy. And yesterday we saw a big sell off after the big rebound on Wednesday. We're going to talk about it. I would focus on bonds today. This is the center of the storm right now. And what you're seeing is bonds selling off and yields higher. The 10-year yield is above 4.5 percent. We've seen a sharply higher move over the last few sessions. The 30-year yield just under 5 percent. We're going to talk about the why and why a lot of the bond folks that I'm talking to on the desk are getting a little worried about this move.

Mike Santoli (1:48)

Yes, for sure. We are 30 minutes into the trading session. Here are some movers that we're watching. Of course, watching China-related names after China retaliated against raised US tariffs with higher levies of its own. We will head live to Beijing for the latest in just a moment, although you see China linked ETFs and stocks higher on the session. Big currency moves as the dollar slides to fresh lows on the year. Yesterday was the dollar's worst day in three years, now hitting a 10-year low against the Swiss franc as well. You see the opposite directions. Dollar and franc have gone on a unidate basis. Euro also popping to highs last seen in 2022 on the commodities front. Gold remaining a safe haven, almost to the exclusion of everything else, hitting more all-time highs this morning, while oil prices continue to fall. And separately, a number of results out of the big banks this morning. JPMorgan, Wells Fargo, Morgan Stanley. We will break down the numbers this hour. JPMorgan up 2%, the others backing off.

David Faber (2:47)

All right, we also have some economic data that just crossed the tape, and Rick Santoli has that for us.

Rick Santoli (2:51)

Rick. These are not pretty numbers on our April preliminary look on University of Michigan sentiment. On the headline number, 50.8. That's three points less than we were expecting. That's about six and a half points under our last look, and that's the weakest since June of 22 56.5 on current conditions. That's also extremely light, weakest since June of 22 Huge drop in expectations. 47.2. And on the inflation front, 6.7% on one year inflation. That follows of 5%. That would be the highest, the highest since the Thanksgiving of 1981

4.4 and 5 to 10 year inflation. That would be the highest since the summer of 91 Now, these are, of course, not quantified, but qualified. They're surveys. And we just had good data in CPI yesterday, PPI today. But these are the worst fears, obviously, of those surveyed. And they really do underscore some of the underlying emotion that is in the marketplace to put forth these types of numbers. Right now, we're hovering at 452, 453 on a 10 year. And do keep in mind, it settled at 4% last week, a huge move, although it still hasn't challenged its high yield close of the year in January. Sara, back to you.

Sara Eisen (4:22)

Okay, Rick, thank you very much. The trade war between the US and China heating up. China striking back with a massive tariff on our exports to China. Eunice Yun in Beijing with more. Eunice, good morning.