#MarketRebound

The market rebound is underway, with stocks bouncing back after a sharp sell-off on Monday. Here are some key updates¹ ²:

- *Stock Market Performance:*

- Dow Jones Industrial Average surged 1,016.57 points (2.66%) to 39,186.98

- S&P 500 gained 2.51% to close at 5,287.76

- Nasdaq rose 2.71% to end at 16,300.42

- *Reasons for Rebound:*

- Comments from US Treasury Secretary Scott Bessent suggesting a potential de-escalation in US-China trade conflicts

- President Donald Trump's statement that tariffs may soon come down and he's optimistic about reaching an agreement with China "pretty quickly"

- Trump's backing off from threats to fire Fed Chair Jerome Powell, saying he has no intention of doing so

- *Market Sentiment:*

- Risk sentiment recovered, with equities erasing Monday's steep losses

- Bitcoin's rebound gathered momentum, suggesting a potential return of risk-on sentiment

- *Economic Data:*

- Japan's PMI composite rose to 51.1, driven by a rebound in services

- Australia's PMI composite dipped to 51.4, with cost pressures emerging due to US tariffs

However, some analysts caution that the rebound may not be sustainable, citing low trading volumes and concerns over stagflation. The Flash April PMI data could reignite market concerns over inflation pressures and economic growth.³