U.S. Markets Rebound Amid Tariff Easing

U.S. equities experienced a notable recovery this week, buoyed by President Trump's 90-day suspension of new tariffs and a more conciliatory tone toward the Federal Reserve. The S&P 500 exited correction territory, regaining over $4.25 trillion in market capitalization since its April 8 low. The Dow Jones Industrial Average rose 1.2% to close at 40,093.40, while the Nasdaq Composite gained 2.7%, though it remains in bear market territory. ​

JPMorgan analysts contend that the "sell America" narrative is overstated. They attribute the recent equity selloff primarily to hedge fund activity, with foreign investors continuing to buy U.S. stock ETFs. ​

Economic Indicators Show Mixed Signals

The U.S. labor market remains resilient, with initial jobless claims rising modestly by 6,000 to 222,000, aligning with expectations. However, core capital goods orders increased only 0.1% in March, indicating potential softness in business investment. ​

Global Markets and Consumer Confidence

In the UK, consumer confidence has declined sharply, with the GfK-Nim index dropping four points to minus 23—the lowest since November 2023. This downturn is attributed to market instability and rising inflation fears, exacerbated by new U.S. tariff policies. ​

Market Snapshot

5 day returns from the S&P 500

Markets have shown resilience amid policy shifts and economic uncertainties. Investors should remain vigilant, as upcoming economic data and potential policy changes could influence market trajectories in the coming weeks.