Last weekend, negotiations between the U.S. and China ended with a positive tone. The U.S. will temporarily cut tariffs on Chinese goods to 30% (from 145%) while China will reduce tariffs on American goods to 10% (from 125%).
Wall Street traders looked past weak economic data and Corporate America’s warnings in early week trading to push stocks higher this week as bond yields fell on speculation the Federal Reserve will cut interest rates to prevent a recession.
New home sales, according to the US Census Bureau in data released Wednesday, rose 7.4% in March to an annualized rate of 724,000, thanks to a surge in the South, the nation's biggest homebuilding area.
In a relatively short-lived reprieve at the outset of the week in the ongoing tariff saga, it was announced very late last week that President Donald Trump’s administration exempted smartphones, computers and other electronics from its so-called reciprocal tariffs, potentially cushioning consumers from sticker shock while benefiting electronics giants.
US inflation cooled broadly in March, indicating some relief for consumers prior to widespread tariffs that risk contributing to price pressures.
In terms of government data releases, the focus for traders and investors this week was on the monthly payrolls and unemployment report released earlier today.