S&P 500 Rally Fades on Tariff Anxiety as Bonds Rise – US Market Wrap

Wall Street traders praising Nvidia’s strong performance had to confront the harsh reality of deteriorating economic data and legal uncertainty surrounding Trump’s trade war. Trump informed Fed Chairman Powell that he was making a mistake by not cutting interest rates.

The S&P 500 gave up the majority of its earlier gain of around 1%. A federal appeals court granted Trump a temporary reprieve from a verdict that threatened to overturn the majority of his tariff program. Treasuries climbed on expectations that the Fed will cut interest rates twice this year, as well as a strong $44 billion sale of seven-year notes. The dollar declined.

The US economy contracted at the start of the year, hampered by lower consumer spending and a greater impact from trade than previously estimated. Pending sales of previously owned homes decreased last month to their lowest level since September 2022, while an increase in recurring jobless claims indicated increased unemployment.

The S&P 500 rose 0.4%. The Nasdaq 100 gained 0.2%. The Dow Jones Industrial Average added 0.3%.

Nvidia led gains in megacaps, up over 3%.

The yield on 10-Yr Treasuries fell five basis points to 4.43%. A dollar gauge declined 0.4%.