Market Performance Overview

• S&P 500: Initially surged 2.75% but concluded at +2.0%

• Dow Jones: Closed +1.9%

• Nasdaq Composite: Finished +2.3%

• U.S. Dollar Index: Increased by +0.4%

Reasons for Market Pullback

Uncertainty over Tariff Cuts

• Bessent’s Commentary: Stated there is no standalone agreement for lowering tariffs on China; reductions require extensive negotiations.

• Timeline Uncertainty: A potential trade agreement with China could take up to three years, dampening expectations.

Mixed Signals from the Fed

• Powell’s Status: Previous talk of removing Powell as Fed Chair uplifted sentiment.

• Incomplete Clarity: Limited details from Bessent regarding Fed leadership create ongoing uncertainty.

Sector and Stock Highlights

• Technology and Consumer Discretionary sectors led but fell short of initial highs.

• Financials and Industrials outperformed, buoyed by expectations of stable easing policies.

Focus on Upcoming Policy Announcements

Investors remain on the lookout for signals regarding trade and monetary policies. This week’s horizon includes Fed minutes and statements from China’s trade envoy, in addition to crucial economic indicators.