From Financial Modeling Prep: 2025-05-13 03:10:00

After a sharp drop post-“Liberation Day,” the S&P 500 has rebounded on news of a larger-than-expected U.S.-China tariff rollback and positive trade rhetoric from Trump. However, Sevens Report warns this relief rally may fall short of new highs.

The rebound was driven by a surprise tariff reduction, cutting levies to 30% and 10%, easing fears of a full-blown trade war. Trump’s positive signals on talks with other countries also boosted risk appetite.

Despite the rally, tariffs remain elevated compared to January, and new threats against movies and pharmaceuticals highlight ongoing trade risks. Without major de-escalation in sight, the boost from tariff relief may be short-lived.

Markets will monitor upcoming events to see if the “Trump Put” holds and if diplomatic breakthroughs can sustain gains. Use the Economics Calendar API for real-time updates on key policy events.

While the recent bounce in the S&P shows relief from trade tensions can drive rallies, Sevens Report reminds investors to stay cautious. Without further policy clarity or a full tariff rollback, gains may be temporary. Stay disciplined, monitor trade talks, and be prepared to adjust exposure if needed.



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