Daily Update: 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
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
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.
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Private Markets
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.
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1wFrom Historic Action to BOLD Solutions: Research and discover the Pathway to Prosperity from the International Monetary Fund (IMF): "While the path of progress is rarely easy, some countries have successfully turned moments of adversity into opportunities for lasting economic progress and better outcomes for people". 1) Does AI have the potential to help countries SAVE millions, billions and even trillions of dollars? 2) What is Policy? About Bureaucracy and Hierarchical Structure? As CEO, stellar servant leader and the UN global climate champion, it's my distinct honor to participate in the 2025 Srings Meetings, organized by the World Bank Group (WBG) and International Monetary Fund (IMF), from April 21 to 28, in Washington DC. The Gathering of EXPERTS from 191 countries across the globe. I will join the IMF Meetings on April 23 to hear more about the policies and partnerships that make a difference from the following: IMF Deputy Managing Director Nigel Clarke, Minister of Economy and Finance of Greece Kyriakos Pierrakakis, Minister of Economy and Finance of Paraguay Carlos Fernandez Valdovinos, Minister of Economy and Finance of Benin Romuald Wadagni, and President Emeritus.
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1wA sharp and informative snapshot of key global trends. From US market volatility to Europe’s CBAM and China’s evolving private sector dynamics—these shifts are critical for businesses and investors alike. Staying aware of the big picture helps us make smarter strategic decisions.