SP 500 Surges 1.68% – Thanks to a Calm Weekend in Washington
Last Friday’s rally wasn’t gloom‑trove style – the market actually stayed cheerful after two big reliefs from Washington.
What Did the Headlines Say?
- No New Tariffs – President Trump didn’t add any more to the smash‑and‑burn list. That’s a sobering no‑noise in trading terms.
- Senate Passes a Quick‑Fix Bill – The Senate slid a temporary spending plan into law, preventing a looming shutdown. Investors sighed a collective “phew” as the risk of a government hiccup vanished.
Why the S&P 500 Loved It
- Trade Tensions Take a Light Break – The usual “U.S. vs. China” trade war jitters were paused. Even big names in the market felt less spooked.
- Government Shutdown No Longer a Threat – With the spending bill on board, the elephant in the room was gone. Corporate recruiters, contractors, and even the Department of Education breathed easier.
- Fed May Cut Rates Soon – Rumors that the Fed will trim rates later in the year gave companies a potential boost. Lower rates could mean cheaper borrowing for the economy.
Other Buzz in the Market
- Gold Hits a New High – Gold crossed $3,000 per ounce. Safe‑haven lovers, you’re watching.
- High VIX – The volatility index is still spiking, reminding us that uncertainty is still in the air.
- Equity Outflows at a Record – Bank of America notes highlight massive outflows, especially from U.S. stocks.
Bottom line: The July‑18 bump was a joyful pause in a downtrend that still sits 10% below its February peak.
What’s Next?
The market’s eyes are now on the Fed’s upcoming policy summit on March 20. The consensus is a 5.25%‑5.50% rate environment, but even whispers about future moves can light up (or dim) the market lights.
Stay tuned – the next big squeeze could be just one policy decision away.
