Late-Day Bounce Wipes Out Losses ahead of Key Earnings – US Market Wrap

A late-day Wall Street rally erased a 1% drop in the S&P 500, as dip buyers emerged during a choppy session in which traders braced for a flood of corporate earnings and key economic data.

Most major groups in the US equity index increased. Boeing and IBM led the Dow Jones Industrial Average’s gains. The advance overshadowed weakness in several tech megacaps, with investors looking for updates from Microsoft, Apple, Meta, and Amazon on the effects of Trump’s trade war. Short-term Treasuries performed well. The dollar fell.

From jobs to inflation and economic growth, the data will continue to come at a similar pace. According to a report from the Federal Reserve Bank of Dallas, a widely followed measure of Texas manufacturing activity fell significantly as executives used terms like “chaos” and “insanity” to describe the tariff turmoil.

Treasury Secretary Bessent told CNBC that the US has put China on hold for the time being as it seeks trade deals with 15 to 17 other countries, implying that it is up to Beijing to take the first step towards de-escalating the tariff dispute.