From Financial Modeling Prep: 2025-04-23 02:40:00

The S&P 500 surged on Tuesday following hints from Treasury Secretary Bessent about easing tariff tensions with China. Fed officials’ conflicting views on inflation and recession risks added intrigue. Dow Jones rose 2.7%, S&P 500 up 2.5%, Nasdaq up 2.7%. 10-year U.S. yield down 3 bps to 4.30%, 2-year yield steady near 4.85%.

Bessent predicts trade de-escalation with China soon, calling current tariff standoff unsustainable. Fed’s Kashkari warns of tariff-driven recession, while Barkin suggests inflation expectations may be softening, hinting at potential rate cuts if labor market weakens. Tech, financials, and industrials led the rally on trade optimism and rate-cut hopes.

Upcoming: Look out for U.S.-China trade talks updates and any changes to tariff schedules. Big tech earnings from Alphabet (GOOGL) and Tesla (TSLA) next week will provide crucial guidance. Economic data to watch: Flash PMIs for manufacturing vs. services, Consumer Confidence, and Retail Sales reports later this week.



Read more at Financial Modeling Prep:: U.S. Stocks Rally on Hopes for China Trade De-escalation