S&P 500 Breaks 6-Day Winning Run, Bonds Rise – US Market Wrap

Wall Street traders sent equities lower in the run-up to the Fed rate decision, with concerns about high valuations overshadowing hopes for an extension of a tariff truce between the world’s two biggest economies. Bonds rose alongside the dollar.

The S&P 500 broke a 6-day winning streak. A rally in Treasuries gained momentum after a solid sale of 7-Yr notes. Longer-dated bonds led gains, with 30-Yr yields down 10 basis points to 4.86%, ahead of the announcement of the size of future debt auctions. Oil rose as Trump repeated the US may impose additional tariffs on Russia and said Russia has 10 days to reach a truce with Ukraine.

US Treasury Secretary Bessent said that the US and China will continue discussions over keeping a tariff truce before it ends in two weeks and that Trump will make the final decision on any extension. Adding an extra 90 days is one option, Bessent said.

The underwhelming market reaction to signals of progress in China talks, as with the US tariff arrangement with the European Union, demonstrates the continuous decrease in the effectiveness of those measures to trigger large swings on Wall Street.

There are further market-moving factors on the horizon. These include the Federal Reserve’s decision on Wednesday and significant data such as the jobs report on Friday. The market will also face a critical test, with four tech titans reporting earnings over a two-day period.