Bad News Priced In—U.S. Markets Soar

U.S. equities surged as the market shook off lingering pessimism. Tech giants and consumer discretionary stocks led the charge, fueled by a sudden shift in tariff policy from former President Trump. Nvidia (NVDA) skyrocketed by 18.72%, Tesla (TSLA) jumped 22.69%, and Apple (AAPL) rallied 15.33%. The Philadelphia Semiconductor Index posted the strongest gain among the major averages, up 18.73%, followed by the Nasdaq Composite at 12.16%, the S&P 500 at 9.52%, and the Dow Jones Industrial Average rising 7.87%.

(Chart 1: S&P 500 Heat Map | Source: Finviz.com)

Last night, in a surprise move, Trump announced a sweeping cut on U.S. tariffs toward trade partners, reducing all previously planned tariffs to 10% and suspending the full implementation of the original high tariffs for 90 days.

Trump's actions sent a clear message: tariffs remain a strategic bargaining chip to force trade partners to the negotiation table and maximize U.S. interests.

With negative sentiment seemingly exhausted, the market saw a massive short squeeze. The S&P 500 recorded its largest single-day gain since 2008, while the Nasdaq posted its second-biggest daily rally in history. At this stage, Trumps tariff maneuver appears to have delivered a short-term victory.

However, the underlying trade issues remain unresolved. A 10% baseline tariff is still in place globally, and major trade deficit partners face rates above 25%. Restructuring supply chains is a long-term process, and rising tariffs could fuel inflationary pressures in the U.S. While consumer stockpiling may offer a temporary cushion, long-term consumption is likely to weaken, posing downside risk to economic growth. Without a more aggressive rate-cutting path from the Fed, the U.S. economy may slide into recession—potentially dragging U.S. equities into bear territory. Federal Reserve Chair Jerome Powell may once again be called upon to rescue the market.

Gold Technical Analysis

On the 1-hour chart, gold faces resistance at 3119. A breakout above this level offers a light long opportunity with a $5–$10 stop-loss. The overall trend remains bullish. If prices fail to breach resistance, expect range-bound consolidation between 3087 and 3119. A dip toward the 3087 support level may present another long entry, again with a $5–$10 stop-loss.

• Support: 3087

• Resistance: 3119, 3137

Risk Disclaimer: The views, analyses, research, prices, or other information provided in this article are intended for general market commentary only and do not constitute investment advice. Readers assume full responsibility for their trading decisions. Trade prudently.