The S&P 500 experienced a significant 1.68% gain last Friday, largely influenced by the absence of new tariff announcements from President Trump and the Senate passing a temporary spending bill, which prevented a government shutdown. These factors contributed to a positive investor sentiment amid concerns about ongoing trade tensions and geopolitical risks. Additionally, expectations for a potential rate cut by the Fed in Q3 supported market stability. However, despite the rally, the S&P 500 remains in a downtrend, reflecting a 10% loss from its February peak and facing challenges with significant equity outflows reported.
The absence of new announcements from President Trump on Friday helped ease concerns about escalating trade tensions, creating a positive sentiment for investors.
The U.S. Senate's expected approval of a temporary spending bill helped avert the risk of a government shutdown, providing stability and alleviating concerns about disruptions.
Expectations that the Fed may cut interest rates in Q3 helped stabilize investor confidence, supporting economic growth and easing pressure on businesses.
Despite the recent recovery, the market still faces many challenges, with equity outflows reaching the highest level of the year according to Bank of America.
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