From Yahoo Finance: 2025-05-24 06:00:00

After a month of tariff uncertainty affecting the market, President Trump’s reciprocal tariff pause led to a historic rally. The S&P 500 correlation peaked at nearly 0.7, but now hovers below 0.3. Market is shifting to individual stock stories, creating a “stock picker’s market.”

Piper Sandler’s chief investment strategist, Michael Kantrowitz, notes the market is transitioning to focus on micro fundamentals over macro headlines. Mixed data and views are keeping market correlations low. While fears remain, investors must differentiate between stocks. Economic data drop-off and tariff threats still pose risks.

Despite the shift to a “stock picker’s market,” caution remains as economic data drop-off looms and tariff threats persist. Trump’s recent tariff threats on the EU and Apple caused a stock slide, highlighting the ongoing trade war uncertainty. Investors must remain vigilant in a volatile market.

Read more: The stock picker’s market is back: Chart of the Week