MARKET RECAP

• Stocks had a big rally. The SPX was up by 5.67%, and the NASDAQ by 7.29%.On Wednesday, stocks rallied by over 9% when Trump announced a 90-day pause on tariffs for just about everyone except China. However, the 10% tariff will stay in place.
• Supposedly, about 75 countries have reached out to negotiate a deal. As we have written before, if we can get tariffs to zero, then that would be a long-term win, minus the short-term damage, which is not minimal.
• But even with the pause, 145% tariffs with China and the 10% flat rate tariff (with some exceptions) is still a huge problem.
• In a bad sign, the yield on the 10-year treasury shot up from 4.01% to 4.48%. When inflation expectations skyrocket, interest needs to increase to compensate. In addition, the US seems to be losing its allure as a safe-haven for investors.The yield on the 2-year went from 3.68% to 3.96%, and the thirty-year from 4.41% to 4.85%.

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