The stock market’s rally was losing steam as Wall Street embraced a risk-on approach.
The Dow was up just 700 points, or 1.8%, after surging more than 1,100 points earlier in the session. The S&P 500 was up 2.2%. The Nasdaq was up 3.3%.
A stock market surge early in the morning accelerated after The Wall Street Journal reported the Trump administration was considering slashing tariffs on Chinese imports.
Such gains have slipped a bit, though the market is still rallying broadly; roughly 385 stocks in the S&P 500 were on the rise, while the Invesco S&P 500 Equal Weight ETF was up 1.5%.
At the sector level, everything but consumer staples and energy were on the rise. Consumer discretionary and technology were both up more than 3%. The Invesco S&P 500 High Beta ETF, which includes the S&P 500’s riskiest stocks, was still up 3.9%. On the flip side, the Invesco S&P 500 Low Volatility ETF was down 0.1%.
Those contrasts signal a focus on riskier stocks. The price of gold was also down 3.8%.
“Remember, back on April 2nd, the President thought he was going easy on countries with the rate of reciprocal tariffs,” writes Bespoke Investment Group co-founder Paul Hickey. “We’ll see how this all plays out, but until the next headline comes out that contradicts yesterday’s, markets can rally. The pace of earnings news has really started to pick up in the last couple of days and will only get busier in the days ahead.”
