Market Moves

• S&P 500: Initially +2.75%, closed +2.0%

• Dow Jones: +1.9%

• Nasdaq Composite: +2.3%

• U.S. Dollar Index: +0.4%

Why Stocks Lost Steam

No Guaranteed Tariff Cut

• Bessent's Take: There is no standalone offer to lower tariffs on Chinese goods—any reduction must emerge from a lengthy negotiation.

• Timeline: A “full trade deal” with China may require up to three years, dampening hopes for a quick win.

Mixed Fed Signals

• Powell Reprieve: Trump's earlier walk-back of Powell firing threats had lifted sentiment.

• Hat Tip, But No Details: Bessent offered no further clarity on Fed leadership, leaving rate-cut expectations in flux.

Sector & Stock Highlights

• Technology and Consumer Discretionary led gains but underperformed initial highs.

• Financials and Industrials outperformed, buoyed by expectations of sustained easing rather than sudden policy shifts.

Eyes on Upcoming Policy and Data

Investors are bracing for further clues on trade and monetary policy. Key events this week include Fed minutes, China trade envoy statements, and fresh economic releases.

To stay ahead of these market drivers, track upcoming announcements with the
🔗 Economics Calendar - Economics Data API
from Financial Modeling Prep.
This API provides real-time scheduling and historical context for central bank meetings, trade negotiations, and major economic indicators—essential for navigating policy-driven volatility.