Overview
- The S&P 500 has climbed 0.8% recently; it stands just 0.5% below its all-time closing high set in February after fully erasing roughly 20% of its spring losses.
- White House Press Secretary Karoline Leavitt said the July 9 deadline for new tariffs is “not critical,” suggesting it could be extended to help secure trade agreements.
- Federal Reserve officials are holding rates steady to gauge tariff effects; traders now see about a 25% chance of a cut at the July meeting.
- The U.S. dollar has fallen to its weakest level since early 2022 as investors weigh tariff effects against the prospect of greater Fed accommodation.
- Economic data show U.S. GDP contracted 0.5% in the first quarter; markets are awaiting Friday’s core PCE inflation report for signs of tariff-driven price changes.