The S&P 500 rose by 0.41% due to tech stock gains, but this does not denote lasting growth confidence as trade tensions escalate. President Trump’s plan to double tariffs could reignite market fears reminiscent of previous trade wars. Meanwhile, U.S. economic data suggests mild weakening, with Q1 GDP contracting by 0.2%, prompting concerns about future growth. Easing inflation pressures provide a silver lining for monetary policy, but renewed trade wars could complicate this outlook and hinder rate cuts. Currently, the market remains reliant on large-cap tech stocks.
The S&P 500 saw a 0.41% rise, supported by tech gains, yet the market's confidence in sustainable growth remains shaky amid rising trade tensions.
Trump’s tariff announcement, doubling steel and aluminum tariffs, risks reigniting fears of a retaliatory cycle, threatening recent diplomatic progress.
U.S. economic indicators suggest mild weakening, with Q1 GDP contracting by 0.2%, raising concerns that the growth momentum from late 2024 is fading.
The core PCE price index, a preferred gauge for inflation, showed some easing, allowing the Fed to maintain a dovish stance amid rising growth concerns.
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