Microsoft and Meta Add Reinforcements to the Recent “Risk On” Atmosphere

Strong Tech & Bank earnings reinvigorate investor sentiment

Highlights

• Strong Tech & Bank earnings reinvigorate investor sentiment

• Mild inflation readings to shift the Fed back to easing mode

• Solid spending growth tempers recession fears

• JGB yields slide as BoJ signals a lengthened pause

Key Takeaways

• Trade Tensions Ease, Markets Cheer: Clouds are parting. The White House is shifting from aggressive tariffs towards doing deals and, in the process, doing a terrific marketing job in convincing investors that several are in the works, the latest being the EU. The rhetoric regarding China has been dialed back, and a view is building that the horrible readings in China’s manufacturing data for April will encourage Beijing to finally pick up the phone. The negative trade commentary out of the White House has no doubt subsided alongside the rapid descent in the President’s approval rating.