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Index Update

Trump delayed tariffs on Mexican goods for a month, with Canada also receiving a 30-day suspension. Despite this, major stock indices closed lower on Monday, with the Dow down 0.28%, the S&P 500 losing 0.76%, and the Nasdaq dropping 1.2%. Investors now await key earnings reports and Friday’s nonfarm payrolls for labor market insights.

Market Movers

On Monday, the top gainers were     GH Research PLC (+88.96%), followed by Kingsoft Cloud Holdings Limited (+18.7%). On the contrary, NAPCO Security Technologies, Inc. (-18.28%) and  Astera Labs, Inc. (-13.46%) declined the most the same day.

Commodities Update

Brent crude oil futures declined toward $75 per barrel as escalating U.S.-China trade tensions raised concerns over global demand. China’s newly announced tariffs on U.S. imports, including a 10% levy on crude oil, added to market uncertainty. Meanwhile, OPEC and its allies maintained production levels despite U.S. pressure to increase supply and curb oil prices.

Macro Update

The dollar index briefly surpassed 109 before settling at 108.6 as markets reacted to escalating US-China trade tensions. Beijing imposed retaliatory tariffs on US exports after new US tariffs took effect. However, optimism remains as Trump and Xi plan to discuss the issue. Meanwhile, Trump delayed tariffs on Mexico and Canada, while trade tensions could impact Federal Reserve policy.

Futures Update

U.S. stock futures rose on Tuesday after President Trump delayed planned tariffs on Canadian goods, following a similar reprieve for Mexico. This came after he initially signed an order imposing a 25% tariff on goods from Mexico and Canada and a 10% levy on China.

Market recovered from a open low on Monday as S&P closing at 5994.58, 0.76% fall for the day, while a 0.84% fall for NASDAQ 100 Index. From a technical standpoint, the S&P 500 once again tested resistance but failed to maintain the upward momentum, suggesting that selling pressure might be building. The index's movement today indicates continued resistance at key levels, with the market failing to hold above the psychological threshold of 6,000. This has led to speculation about the possibility of a more sustained downward trend if the market cannot regain its footing. The Relative Strength Index (RSI) for the S&P 500 is hovering around 49.60, which is near the midpoint, signaling neither overbought nor oversold conditions but hinting at potential further declines or consolidation before any significant recovery. Market is particularly focused on the $6,100 level as a formidable resistance, where previous attempts at breaking through have met with sell-offs. Conversely, the $5,900 level is being watched as a critical support zone; a breach below this could signal deeper correctionary moves in the short term.

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