Posted on 05/12/2025 2:56:42 PM PDT by DallasBiff
U.S. stocks leapt after China and the United States announced a 90-day truce in their trade war.
The S&P 500 jumped 3.3% Monday. The Dow Jones Industrial Average rose more than 1,100 points, and the Nasdaq composite rallied 4.3%.
Hopes for an economy less encumbered by tariffs also sent crude oil prices higher. The U.S. dollar strengthened against other currencies, and Treasury yields jumped on expectations the Federal Reserve won’t have to cut interest rates so deeply this year in order to protect the economy.
(Excerpt) Read more at apnews.com ...
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Yes I know markets are cyclical, just pointing out the bias.
Imagine how great the market would do if he reversed ALL his policies!
The bias will never change, but the pros know China was the “big get”. They also know Trump moved toward China and cut a deal. Which means the smaller deals are going to get done as well.
The market is richly priced but the fear factor just went down a lot. Have to check the VIX and the volume level tomorrow. Sounds like a stalemate for the moment, we’ll see.
Correction recovered.
Now they’re the fools gold of journalism.
Question is now will everybody run out and sell and drop the market?
The Uni-party is a den of vipers wo are taking this nation down.
You are absolutely correct. This is an insane time to be considering tax cuts.
“It needs to go down.” [bond yield]
We might like for it to go down, but it reacts to outside forces. The coming lower energy prices should help but Congress will never do anything more than ‘nibble and pose’ until there is a crisis.
It's not that this is a bad time for tax cuts. It's a bad time to keep piling up more debt by deficit spending. In other words, starve the government of more money to spend in order to downsize government, create private sector jobs & let the people have more to spend.
Are you a government employee by any chance?
Tax cuts are not the problem, government spending is the problem.
“Question is now will everybody run out and sell and drop the market?”
They did when the VIX was at 55. It’s now around 16, so fear is low at this time. Bond Market is nervous about inflation. Stocks and Real Estate tend to increase in value during inflation so we could rally due to that. This market is a nervous nellie, best to think in terms of the rest of the year at least. I hope we see the churn evolve into a boring but positive pattern in a few months.
I agree.
I figured you did from your previous statement. 🙂👍
Rock and Roll Baby!
👍😊
The Bond Market is, by far, more important. The interest rate keeps going higher. It needs to go down. It is going up because the legislative branch refuses to to get serious & get out-of-control spending under control.
Xxxxxxxxxxxxx
Maybe it’s too simple to look at it from this angle, but since Covid is in the rear view mirror, why won’t they start by taking the gummit spending back to 2019 levels???
Even 2019 had a deficit, but it wasn’t a trillion. That would be good for starters, but I would like to see better.
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