6,600 Dow Rally Points in Just Seven Days!

Tariff headlines induce an incredible risk-on rally

Highlights

• Tariff headlines induce an incredible risk-on rally

• Trade talks raise growth prospects and keep bond yields steady

• The key data point today is the April CPI release

• Stagflation risks loom amidst impending tariff shock

Key Takeaways

• Trade Hopes Fading Fast: The action in global equity markets is rather mixed. For a change, U.S. futures are not flashing green — a day after the major averages enjoyed their best session since April 9^th, when the “reciprocal” tariffs were given a 90-day reprieve. Headline-induced bounces abound — but how many more of these are left in the tank? There is less than a “thaw” and more a realization by both sides that an effective trade embargo would trigger mutually assured economic destruction, both at home and across the planet.