Tariff confirmation sends markets soaring – US Market Wrap
Stocks swung around in the final stretch of Wall Street trading, with technology under pressure ahead of Apple earnings. Oil prices rose as the currencies of Mexico and Canada fell after President Donald Trump announced he would slap tariffs on both countries.
Despite a decline in the S&P 500’s most prominent sector, technology, approximately 80% of the gauge’s businesses gained. Buoyed by news indicating an increase in consumer spending, economically sensitive Wall Street entrants such as small caps outperformed significantly. The US equities benchmark’s equal-weighted version, which gives Target the same clout as Nvidia, rose 1%, fuelling confidence that the bull market will continue.
This would assist to alleviate concerns about “concentration risk” from the tech megacaps that have come to dominate benchmark indices. Those nerves were on full display earlier this week, when a Chinese startup DeepSeek’s artificial intelligence model raised concerns about whether valuations of the technology that has propelled the torrid comeback from market lows would be difficult to explain.
While the high-flying tech megacaps continue to drive the majority of S&P 500 earnings growth, it is expected to be at its slowest pace in nearly two years. Robust results are a much-needed boost for US markets after Wall Street reduced its forecasts for interest rate reduction this year.
The yield on 10-year Treasuries declined was little changed at 4.53%.