In the latest Take 5, Ryan Detrick, Chief Market Strategist, and Sonu Varghese, VP, Global Macro Strategist, dig into the recent market rally and explore the possibility that the worst may be behind us. With tariffs rolled back and earnings season exceeding expectations, could the lows be in? They also unpack the Fed’s latest moves, inflation data, and what to expect next for markets and the economy.
Key Takeaways:
- Massive Market Rally The S&P 500 has bounced back significantly over the last few weeks after nearing a bear market in early April.
- Tariffs Rolled Back One of the biggest drivers of the rally? The surprise rollback of extreme tariffs on Chinese goods.
- Inflation Has Normalized April’s inflation report was positive. Ryan and Sonu reaffirm their view that inflation is no longer a major concern.
- The Fed on Hold With inflation down, the Fed has taken interest rate cuts for June—and possibly July—off the table. September could still be in play, depending on economic strength.
- Volatility Isn’t Over Don’t expect a straight shot higher. The market may be stronger now, but some chop remains likely without imminent rate cuts or resolution to every uncertainty.
