Markets Rally as Tariff Delays Fuel Optimism, Dollar Slides

U.S. equities surged as investors responded positively to a delay in President Trump’s proposed reciprocal tariffs, easing immediate trade concerns. The S&P 500 climbed, nearing record highs, while the Dow jumped 342 points. Big tech led the charge, with Tesla, Nvidia, and Apple posting strong gains.

Meanwhile, the dollar weakened against major currencies, reflecting cautious sentiment amid trade policy uncertainty. Treasury yields declined following a hotter-than-expected wholesale inflation report, but traders largely shrugged off inflation fears, focusing instead on the Federal Reserve’s upcoming policy signals. With bullish momentum intact, markets now turn their attention to key resistance levels and potential shifts in central bank strategies.

U.S. stocks rallied, with the S&P 500 rising to near-record highs, as traders reacted positively to the delay in President Trump’s proposed reciprocal tariffs. The dollar weakened against major currencies, while Treasury yields fell after a hotter-than-expected U.S. wholesale inflation report.

Big tech-led gains, with Tesla and Nvidia surging over 3%, while Apple climbed 2% ahead of a product announcement. The Nasdaq 100 added 1.4%, and the Russell 2000 gained 1.2%. Meanwhile, investors looked past inflation data, betting that the Fed’s preferred price gauge may show softer trends.

Despite the dollar’s slide, analysts warn that rate cut expectations and shifting global monetary policies could keep long-term dollar strength intact. Some strategists also caution that U.S. equities may soon face headwinds as market positioning becomes increasingly crowded.

The dollar slipped on renewed tariff worries as President Trump prepared reciprocal levies, stirring uncertainty across currency markets. While the greenback’s longer-term outlook stayed positive, investors briefly sought the perceived safety of alternatives like the yen and Canadian dollar. The lack of concrete details underscored the fluid nature of trade discussions, leaving market sentiment in a state of watchful anticipation.

Wall Street surged on Thursday, brushing off inflation concerns and Trump’s latest tariff announcement. While the president signed a memorandum to explore reciprocal tariffs, he stopped short of immediate action, easing market fears. The Dow jumped 342 points, marking its best day in weeks, while the S&P 500 and Nasdaq neared record highs. Meanwhile, market volatility eased, with the VIX hitting a three-week low.

Since bottoming at 5770.25 on January 13, the S&P 500 Index has sustained a well-defined uptrend, characterized by a series of higher highs and higher lows, reinforcing continued buying momentum. Price action remains above both the 20- and 50-period Exponential Moving Averages (EMAs), signaling persistent bullish pressure and reinforcing near-term upside potential.

Key technical indicators align with this positive trajectory. The Momentum Oscillator holds above the critical 100 threshold, reflecting sustained strength, while the Relative Strength Index (RSI) remains above its neutral 50 level, confirming prevailing bullish sentiment. Should the uptrend continue, traders will likely target key resistance levels at 6129.55, 6265.08, and 6484.39. However, a shift in market dynamics could bring downside focus to support levels at 5993.77 and 5910.24, which may serve as crucial inflection points.

Investor optimism remained strong as markets rallied on the delayed implementation of President Trump’s proposed tariffs. With the S&P 500 nearing record highs and bullish momentum intact, traders are focusing on key resistance levels and broader macroeconomic factors, including Federal Reserve policy expectations.

Despite the dollar’s decline and lingering trade uncertainties, risk appetite continues to drive equities higher. However, with inflation concerns and crowded market positioning, potential headwinds remain. In the near term, attention will be on upcoming economic data and central bank moves, which could shape the next leg of market direction.