To The Moon

Markets Rally as Tariff Fears Ease 🚀

Stocks surged Thursday, flirting with record highs after President Trump’s tariff announcement turned out to be less aggressive than feared. Instead of imposing immediate tariffs, Trump directed officials to study potential trade measures, giving markets breathing room.

Tariffs

Key Market Moves:

• $S&P 500(.SPX)$ : ⬆️ 1%, just 0.06% below its all-time high

• Dow Jones: ⬆️ 0.8%, within 0.7% of its record

• $NASDAQ(.IXIC)$ : ⬆️ 1.5%, now just 1.1% away from a new high $NVIDIA(NVDA)$ $Tesla Motors(TSLA)$ $Apple(AAPL)$ $Alibaba(BABA)$

Tariff Tension Eases

Trump’s Truth Social post had markets on edge, but when the details arrived, the reaction was relief:

• No immediate tariffs

• Commerce Dept. to study country-by-country options

• Report expected April 1, leaving time for negotiations

Inflation Data: Hot but Mixed

The Producer Price Index (PPI)—a key measure of wholesale inflation—came in hotter than expected:

• PPI rose 0.4% MoM (vs. 0.2% expected)

• Up 3.4% YoY, well above the Fed’s 2% target

However, key components tied to Fed-watched inflation gauges were tamer:

• Airfares: ⬇️ 0.3% (after December’s +5% jump)

• Medical services: Mixed (Dental care +1.5%, physician & hospital care down slightly)

• Portfolio management costs: ⬆️ 0.4%

Energy & Food Prices:

• Eggs: ⬆️ 44% MoM

• Diesel Fuel: ⬆️ 10%

• Vegetables: ⬇️ 22%

What’s Next?

Markets are now laser-focused on the Personal Consumption Expenditures (PCE) index—the Fed’s preferred inflation measure—set for release on Feb. 28.

Until then, the Fed is likely to stay on hold, waiting for clearer inflation trends before making any rate moves. 📉👀

The Calendar

Enbridge and Moderna report results .

The Census Bureau reports retail sales for January. Economists forecast retail spending to remain flat month over month, after a 0.4% increase in December. Excluding autos, retail sales are expected to increase by 0.3%, one-tenth of a percentage point less than previously.

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.