Stocks Rise, Bonds Fall as Trump's Tone on Trade Calms Markets
Equities rallied on Wednesday as President Donald Trump's more measured tone on trade eased concerns and fueled speculative buying. Corporate America is expected to benefit from his policies, boosting investor sentiment.
Indices
* S&P 500: +0.9%
* Nasdaq 100: +0.8%
* Dow Jones Industrial Average: +1.1%
* Russell 2000: +1.8%
Bonds
* 10-year Treasury yield: -5 basis points to 4.58%
* Germany's 10-year yield: -2 basis points to 2.51%
* Britain's 10-year yield: -7 basis points to 4.59%
Currencies
* Bloomberg Dollar Spot Index: Little changed
* Euro: $1.0424 (unchanged)
* British pound: $1.2331 (unchanged)
Commodities
* West Texas Intermediate crude: -2.3% to $76.06
* Spot gold: +1.3% to $2,744.38
Key Points
* Over 400 S&P 500 stocks gained, with Softbank Group, OpenAI, and Oracle leading the surge.
* Small caps hit a one-month high, benefiting from a protectionist stance.
* Space shares climbed on executive orders, while electric vehicle makers like Tesla declined.
* US-listed Chinese stocks advanced as Trump has refrained from announcing tariffs.
* Callie Cox of Ritholtz Wealth Management highlights the importance of discerning which tariff speculations are founded.
* Emily Roland and Matt Miskin of John Hancock Investment Management suggest exploring non-US equities and mid-caps for potential gains.
* Solita Marcelli of UBS believes US economic growth will continue despite tariffs.
* HSBC expects a favorable environment for risk assets due to dovish inflation readings.