Anastasia Amoroso, Chief Investment Strategist at iCapital, joins to talk about a resilient US economy and momentum in markets in spite of Washington uncertainty.
A tech rally after Nvidia Corp.’s solid results lifted stocks. That’s despite data showing a contraction in the US economy, which triggered bond gains on bets the Federal Reserve will cut rates twice this year. Traders also parsed a court ruling that blocked some of Donald Trump’s tariffs.
Most major industries in the S&P 500 rose, with the gauge up about 1%. The world’s largest chipmaker jumped 5% after soothing investor fears about a China slowdown, saying that the AI computing market is still poised for “exponential growth.” Treasury two-year yields, which are more sensitive to imminent policy moves, dropped three basis points to 3.95%. The dollar fell against all developed-market currencies.
Gross domestic product decreased at a 0.2% annualized pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday. That compared with an initially reported 0.3% decline. The economy’s primary growth engine — consumer spending — advanced 1.2%, compared with an initial estimate of 1.8%.
“Historic and more current data brought no surprises,” said Neil Birrell at Premier Miton Investors. “Even if that had been the case, the focus would have remained firmly on the here and now — tariffs, courts, China, Nvidia, yields and equity markets.”
Two of Wall Street’s top investment banks cautioned that the impact of a court ruling striking down many of Trump’s tariff measures may prove limited. Goldman Sachs Group Inc.’s Alec Phillips said “this ruling represents a setback for the administration’s tariff plans and increases uncertainty but might not change the final outcome for most major US trading partners.”
“The tariff levels that we had yesterday are probably going to be the tariff levels that we have tomorrow, because there are so many different authorities the administration can reach into to put it back together,” Michael Zezas, Morgan Stanley’s global head of fixed income and thematic research, told Bloomberg Television.
The S&P 500 rose 0.8%. The Nasdaq 100 added 1.3%. The Dow Jones Industrial Average gained 0.2%.
The yield on 10-year Treasuries declined three basis points to 4.45%. The Bloomberg Dollar Spot Index lost 0.4%.
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