U.S. stock markets opened the new week on a positive note. All three major indexes closed in the green on Monday, even as President Donald Trump—now back in the White House—announced a doubling of tariffs on steel and aluminum imports, heightening global trade tensions.
🔹 The S&P 500 rose 0.4%, ending at 5,935.94
🔹 The Nasdaq Composite gained 0.7%, closing at 19,242.61
🔹 The Dow Jones edged up 0.08% to 42,305.48 and entered a bull market, marking a 20% rise from its recent low
Optimism Holds—for Now
Despite the heightened tariffs, investor sentiment remained upbeat on Monday, with hopes that trade negotiations wouldn’t fully collapse. However, Tuesday’s futures suggest that optimism is fading:
🔻 S&P 500 futures fell 0.39%
🔻 Nasdaq 100 futures slipped 0.37%
🔻 Dow Jones futures dropped 159 points
JPMorgan: Current Rally May Be Losing Steam
According to Mislav Matejka, chief strategist at JPMorgan, the recent market rally since April has been driven more by technical factors, such as short-covering and systematic re-risking, rather than strong economic fundamentals. He warned these forces “are no longer at play.”
He noted that investor positioning is no longer cautious, and current stock valuations are stretched. Future gains, if any, will likely depend on real economic performance.
He also warned about the risk of stagflation, where inflation remains high while the economy slows—especially if businesses pass on higher costs resulting from tariffs. Though previous full 20–25% tariffs never took full effect, current average tariffs still hover around 12%, a sharp increase from pre-Trump levels.
Northwestern Mutual Flags Consumer and Jobs Risk
Matt Stucky of Northwestern Mutual Wealth Management said that while markets aren’t showing signs of collapse, a modest correction is possible. “The downside risk is likely a ‘normal’ pullback—unless unemployment starts to rise,” he explained.
He added that consumer spending, which has so far supported markets, could come under pressure. “We’ll see how consumers really react to higher prices later this month and into the summer,” he said.
Meanwhile, U.S. manufacturing is already feeling the squeeze. The Institute for Supply Management reported that factory activity declined for the third straight month in May, and suppliers are taking longer to deliver goods—a clear sign that tariffs are straining supply chains.
Fed Stays on the Sidelines
Dallas Fed President Lorie Logan acknowledged that inflation remains “somewhat above target,” and said the situation is too uncertain to draw firm conclusions. Despite this, markets are currently pricing in two rate cuts by the end of the year, each by 25 basis points.
Tech Stocks Drive Monday’s Gains
Technology stocks helped boost markets:
🔹 Nvidia rose 1.7%
🔹 Meta (Facebook) climbed 3.6%
However, Tesla fell 1.1% following reports of declining monthly sales in Portugal, Denmark, and Sweden, putting pressure on its stock despite broader strength in tech.
What’s Next?
All eyes now turn to Friday’s nonfarm payrolls report, which could provide fresh insight into the stability of the U.S. labor market. The results may reshape expectations for rate policy, trading decisions, and market direction heading into summer.
#WallStreetNews ,
#TRUMP ,
#Tariffs ,
#SP500 ,
#stockmarket Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“