MARKET RECAP

• SPX +5.27%, Russell 2000 +4.46%, Nasdaq +7.15%.
• SPX is now 3% off its record high.
• Stocks have staged a dramatic recovery since the April 8th low. Trump has backed off the dramatic tariff increases over the last few weeks, but he is still insisting on tariffs of at least 10% (at least so far) at best for some nations and more for others. While not nearly as bad as it could be, it is still bad for the economy. And the damage to the American brand make take a long time to recover, if it even does.
• The consensus is that Scott Bessent takes precedence over Peter Navarro. That is a good thing!
• China and the US agreed to reduce tariffs. The US tariff rate on Chinese imports is now 30%, and China will charge the US 10%. The US rate includes a 20% penalty for fetanyl.
• Walmart warned they would increase prices and Trump then laid into them. What does Trump expect? If he doesn’t want Walmart to increase prices then don’t set tariffs.Yes, tariffs lead to price increases!
• Moody’s downgraded US debt.

SPX