US Index Gains Continue Cautiously – US Market Wrap

Wall Street traders are cautiously adding fuel to the stock market rally, betting big that Corporate America will weather slowing economic growth and tariff-induced earnings disruptions.

Investors overlooked weak consumer confidence and labour data to propel the S&P 500 to its best six-day gain since March 2022, with the gauge rising about 8% in that time. Equities fell earlier as some industry titans lowered their earnings forecasts due to uncertainties about the effects of President Donald Trump’s trade war. Treasuries extended their April gains on expectations that US economic activity will slow further.

A group of stock bulls is fuelling an equities rally, even as Trump’s tariff war shows no signs of abating, with the economic toll rising by the day. One theory holds that investors are concerned about missing out on the early stages of the market rebound, citing the long history of US rebounds. Add bets that the Federal Reserve will lower interest rates to avoid a recession, and a risk-on investment case may emerge.

However, after cruising along comfortably for most of last year, the world’s largest economy lost altitude at the beginning of 2025 as consumers tired and the trade deficit ballooned due to a tariff-related scramble for imports.

In the latest shift in Trump’s trade strategy, the president plans to sign an executive order to soften the impact of his auto tariffs, preventing duties on foreign-made vehicles from stacking on top of other levies and lowering charges on overseas parts used to manufacture vehicles in the United States.