📉 Stock Markets Drop, Dollar Weakens Amid Investor Caution

Traders are locking in profits and holding off on new positions as markets pull back following optimism around the temporary U.S.–China trade truce.

⚫ S&P 500 futures down 0.7%

⚫ 30-year Treasury yields rise above 5%

⚫ Dollar weakens against all major currencies

⚫ Oil up 0.9% amid rumors of a potential Israeli strike on Iranian nuclear sites

📌 The U.S. Congress is debating tax reforms — a key pillar of the Trump administration’s policy agenda. With no concrete details yet, markets are on edge.

📌 Morgan Stanley has raised its S&P 500 forecast to 6,500 by Q2 2026 and expects Fed rate cuts — which could boost both stocks and bonds.

“Optimism over the end of the trade war may be premature — fundamental differences between the U.S. and China remain,” said Frederique Carrier of RBC Wealth.