The S&P 500 is back around the all-time highs after a strong rally triggered by the benign US PPI and the Trump’s reciprocal tariffs announcement. In fact, despite a higher than expected US PPI report, the details that feed into the Core PCE index, which is what the Fed focuses on, were all very soft. That helped to bring the early estimates down to more benign levels. The Core PCE Y/Y is now projected to fall to 2.6% vs. 2.8% in the prior month. That’s good news for the Fed. The bullish momentum increased eventually as the Trump’s tariffs saga came to an end. In fact, the US President announced his reciprocal tariffs that could go into effect in April but the overall tone of it wasn’t aggressive and sounded a lot like the start of a negotiating process to bring tariffs to a fair level for everyone. We don’t have much on the agenda this week except the Flash US PMIs on Friday, but the path of least resistance remains to the upside as long as the disinflationary process continues without any growth scare.