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May 9, 2025 at 9:00 a.m. EST
Happy Friday,
Yesterday, markets reacted positively to the UK trade announcement but extended to the upside during the press conference as President Trump continued to feed trade hopium with some positive comments ahead of this weekend’s China trade talks in Geneva. At the high, the S&P 500 was up >1% getting within 0.5% of its 200d ma before giving up about half of those gains into the close. It has been another busy evening of earnings and trade headlines. Press reporting overnight suggested that coming out of the weekend China tariffs could be cut to 50% - 60% from its current 145% level. However, this morning on Truth Social, President Trump said “80% tariffs on China seems right! It’s up to Scott B.” For the record that 80% level is back to about where things were coming out of the Rose Garden. Futures were hovering around unchanged for much of the evening and started to move a bit higher before the Trump headlines caused a little volatility. S&P futures are back near morning highs up ~0.35%.
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