Daily Update — April 21, 2025
US Stocks Sell-off; Europe’s CBAM; and the Big Picture on Private Markets
Today is Monday, April 21, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Economy
Institutional, retail investors shed $27B in US stocks in early April sell-off
In early April, US financial markets experienced significant volatility following the initial announcement of new tariffs by the US government, which were later delayed for 90 days. During this period, institutional and retail investors collectively sold off approximately $27 billion in US stocks. Institutional investors accounted for $19.52 billion of the April 2–10 sell-off, surpassing the $18.88 billion in net capital outflows recorded all of March. However, this figure remained below the average monthly equity offloading of $35.92 billion seen over the past year, indicating a continued trend of cautious trading.
Hedge funds, index funds and exchange-traded funds capitalized on this downturn, collectively purchasing a net $17.12 billion in equities during the same time frame. This activity aligns with broader trends observed over the past year, suggesting that while institutional investors have been exercising caution amid the new administration's policies, hedge funds have been actively seeking opportunities in the market.
Energy Transition & Sustainability
Listen: A dose of realism for Europe’s CBAM
Efforts to simplify the EU's Carbon Border Adjustment Mechanism reflect a broader struggle within the bloc to balance environmental goals with economic realities.
In this episode of “Energy Evolution,” host Eklavya Gupte speaks with Commodity Insights Senior Director Coralie Laurencin, Dan Maleski of Redshaw Advisors and Nick Ogilvie of CarbonChain, who dig deep into what these proposed changes mean for both the EU's industrial and climate strategy and the broader global energy transition.
Private Markets
See the Big Picture: Private Markets Playbook for 2025
Despite ongoing macroeconomic concerns, private equity and venture capital partners anticipate an improvement in deal activity and fundraising. Some uncertainty remains in the US, however, where the economic outlook has worsened and President Donald Trump's recent announcement of global tariffs adds complexity to fund managers' strategies for divesting portfolio companies, especially those vulnerable to the new duties.
A notable trend is the dramatic increase in capital funding for artificial intelligence, which surged 70% year over year to reach $83 billion in 2024. Venture capitalists have notably increased their investments in late-stage AI companies, tripling their stakes compared to the previous year. Additionally, the private credit market is projected to continue its robust growth, with total assets under management expected to reach $3 trillion by 2028, effectively doubling from early 2025.
Explore S&P Global Market Intelligence’s private markets solutions to position your business for success with integrated data, software and expertise.
In case you missed it
- Strong banking and sukuk industry performance led to 10.6% growth for the global Islamic finance industry in 2024, with total sukuk outstanding surpassing $1 trillion for the first time.
- Italy's banks have strong capital buffers and relatively low nonperforming asset ratios as they enter into a period of economic uncertainty brought about by new US tariffs.
- Japan's refiners fully support OPEC+ crude producers' decision to increase output as the country's reliance on Middle Eastern suppliers is expected to remain high in 2025 despite efforts to diversify supply sources.
Upcoming events
- Global Airlines Industry: Navigating Diverging Trends | April 22 (Webinar)
- AI Has Swallowed the Tech Industry: Indigestion to Follow? | April 24 (Webinar)
- Sustainable1 Summit 2025 | April 30 (In-person: London) and June 26 (In-person: Singapore)