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It’s been a dazzling rally for the past two weeks as investors have pulled back from the tariff war narrative and see a chance for a truce between China and the U.S.
In this brief
The 1-Minute Market Report, May 4, 2025
Summary
- The market rebounded strongly as tariff tensions eased, with the S&P 500 enjoying an 8-day win streak and a 2.1% rise in May.
- Investors shifted from safe havens like gold to risk assets, boosting sectors like Industrials, Tech, and Comm Services, while selling Energy and Autos.
- Mid-Cap Growth and Small-Cap Growth outperformed, while defensive stocks like Staples and Utilities were sold off in favor of cyclicals.
- The rally's sustainability hinges on U.S.-China trade negotiations, with significant money flows into Bitcoin, Industrials, and Emerging Markets.
Trader, analyst & portfolio manager, from 1975 - 2001. Former head of equity trading at Northern Trust Co. in Chicago. Now a private investor, founder of a nonprofit investor advocacy firm, and private investing coach. It gives me great satisfaction to teach retail investors the same skills and strategies that I used with my high net worth clients as a private wealth manager. It may be a cliche, but giving something back to the community is more rewarding to me than helping very rich people get even richer.
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