Good morning. Markets return from the long weekend relieved by another pause on the late-Friday tariff headlines, with President Trump calling for a 50% tariff on the European Union and a 25% import tax on Apple iPhones manufactured abroad. While trade tensions had seemed to be easing, last week’s rhetoric is a stark reminder that tariff risk remains a major overhang for global equities. Despite this, investors continue to remain optimistic, bolstered by strong earnings, robust housing data, and a softer bond market.

Looking ahead, today brings a full slate of economic data including durable goods orders, consumer confidence, and the Dallas Fed index. Tomorrow, eyes turn toward the Senate's markup of the tax and spending bill, where major revisions are expected. Between trade headlines, fiscal debates, and macro data, expect more intraday volatility as the market digests competing crosscurrents.

Why It’s Never Been Better to Be Big
The Economist explores how large corporations are weathering economic and policy shocks better than smaller competitors, widening market share and influence in the post-pandemic and tariff-laden environment.
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Senate Plans Big Changes to House Tax Bill
The Economist outlines the Senate’s approach to rewriting key parts of the Trump administration’s tax-and-spending bill, focusing on deficit limits and SALT revisions.
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Trump Weighs New Sanctions on Russia
The Wall Street Journal reports on souring U.S.-Russia relations and possible new sanctions, highlighting how geopolitical risks are stacking alongside economic ones.
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Goldman: Tariffs May Not Trigger Inflation Spike
MarketWatch summarizes Goldman Sachs' latest research showing that tariff-driven price hikes are unlikely to spiral into broader inflation due to offsetting deflationary forces.
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iPhones Still Cheaper Abroad, Even With Tariffs
MarketWatch explains why Apple’s supply chain calculus may not change even under proposed import taxes, with India remaining more cost-effective than domestic manufacturing.
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Treasury Yields Dip Amid Trade Fears, European Optimism
CNBC covers how bond markets rallied on Friday as U.S.-EU tensions resurfaced while Japanese bonds also saw buying on Ministry of Finance news.
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U.S. Core Capital Goods Orders Fall Sharply
Bloomberg highlights a 3.2% drop in April core capital goods orders, the sharpest since October, raising concerns about business investment trends.
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Equity markets finished lower Friday as tariff fears re-emerged. President Trump’s early-morning comments on Truth Social targeted both the European Union and Apple, sending major indices lower and tech stocks into a tailspin. The S&P 500 dropped for a fourth straight session but found support near its 200-day moving average. Apple led the declines, falling for an eighth straight day, while iPhone suppliers and other multinationals were also hit. Outside tech, retail stocks struggled following mixed earnings, while nuclear and uranium stocks surged on news of Trump’s executive orders to boost nuclear energy.

Treasury yields dropped in response to the trade news, with the 10-year falling to 4.50% and the 30-year ending at 5.00%, both well off their intraday highs. Bond investors appear to be balancing concerns over swelling deficits with a potential demand shock from new tariffs. Gold surged over 2% to $3,366/oz in a classic haven rally. Bitcoin, which had soared earlier in the week, dipped slightly but remains just under all-time highs.

In macro data, April new home sales rose nearly 11% to a 743,000 annual rate, beating expectations. Regional strength was broad-based, except in the Northeast. Inventory tightened to 8.1 months, and the median home price fell 2% YoY to $407,200.

In international markets, Asian equities rose as China implemented new easing measures, including deposit rate cuts. European markets closed lower on the Trump tariff threats. Oil prices posted modest gains amid speculation of further OPEC+ supply increases and Iran-U.S. nuclear framework talks. The dollar sold off sharply, with the DXY touching monthly lows before paring losses. Yen and Canadian dollar outperformed amid safe-haven and commodity-linked buying.

Markets remain caught between strong earnings momentum and renewed policy risk. The Fed is on pause, but tariffs and tax policy are not. With Treasury yields moderating and volatility creeping higher, we remain focused on positioning for both resilience and tactical opportunities across sectors and asset classes.