Good Morning,
Happy Monday and I hope all the moms had a great Mother’s Day weekend!
Stocks opened significantly higher this morning as the U.S. and China agree to slash tariffs for 90 days. Early details indicate U.S. tariffs on China will fall to 30% from 145% while China’s tariffs on the U.S. will fall to 10% from 125%. More details will likely emerge throughout the day but the positive sentiment has bolstered investor confidence. Rate cut projections now show the first cut likely coming in September as opposed to June. This news comes ahead of a big week of data that includes both PPI and retail sales figures on Thursday. Q1 earnings have largely beat expectations and given the latest reprieve in tariffs, Q2 earnings will likely benefit as well. I still see opportunity within select growth areas of the market here as prices remain off the highs and momentum turns positive. Attractive fixed rates offer some downside protection here as well. Please continue to reach out with any questions/comments!
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management. A look at this week’s economic data and value vs. growth stocks, are among the topics.
Have a great week!