Closing Recap 

U.S. stocks finished mostly higher after a volatile session, navigating a surprise court ruling against Trump’s tariffs, mixed economic data, and ongoing Fed uncertainty; Treasury yields fell sharply after a strong auction, the dollar weakened, and gold climbed. 

Key Takeaways 

• Volatile Session, Mostly Higher Close: Stocks opened strong, faded, then rallied into the close. Nasdaq was the laggard. 
• Court Blocks Trump Tariffs: A major U.S. trade court ruling deemed most of Trump’s “Liberation Day” and fentanyl tariffs illegal and blocked them, though an appeals court later reinstated them during appeal. 
• NVDA Lifts Tech Early: Positive earnings and guidance from Nvidia initially boosted the tech/AI space, but some gains were pared. 
• Weak GDP, Mixed Inflation: Prelim Q1 GDP showed a slight contraction (-0.2%), though better than feared. Core PCE within GDP was also slightly cooler than expected. 
• Yields Tumble, Dollar Falls: Treasury yields dropped significantly (10-yr -10bps from highs) following weaker GDP and a very strong 7-year note auction. The dollar index fell. 
• Gold Rallies: Gold prices rose as the dollar weakened and safe-haven demand persisted amid policy uncertainty. 
• Powell Meets Trump: Fed Chair Powell met with President Trump; Powell reiterated policy will be data-dependent and non-political. Fed speakers offered mixed signals on rate cuts. 
• Sentiment Mixed: AAII bulls dropped while bears rose; NAAIM exposure increased, indicating professional money managers adding risk. 

Market Overview 

U.S. equity markets navigated a day of significant headlines and volatility, ultimately finishing mostly in positive territory after recovering from earlier weakness. The session was dominated by a landmark U.S. Court of International Trade ruling that deemed the vast majority of President Trump’s recent sweeping tariffs illegal and ordered them blocked. This news initially sent shockwaves and then a degree of relief through markets. However, the situation became more complex late in the day when a U.S. appeals court reinstated the tariffs pending the appeal process, injecting fresh uncertainty. 

Index	Up/Down	% Change	Last
DJ Industrials	117.03	0.0028	42215
S&P 500	23.62	0.004	5912
Nasdaq	74.93	0.0039	19175
Russell 2000	6.9	0.0033	2074

Stocks had opened higher, partly on continued positive momentum from Nvidia’s strong earnings report yesterday, which initially lifted the AI and semiconductor space. However, economic data released this morning was mixed. While preliminary Q1 GDP showed a slight contraction (-0.2%), it was better than the initial -0.3% estimate, and the core PCE inflation component within the report was also a touch cooler than anticipated. Conversely, weekly jobless claims ticked higher, and pending home sales fell sharply, indicating ongoing economic crosscurrents. 

Treasury yields, which had been higher early, tumbled significantly throughout the day, especially after a stellar 7-year Treasury note auction that saw record low dealer takedown and strong foreign demand. This sharp drop in yields provided a tailwind for equities in the afternoon. Adding to the day’s intrigue, Federal Reserve Chair Jerome Powell met with President Trump at the White House, with the Fed emphasizing that policy discussions were off the table and decisions would remain data-dependent and non-political. Other Fed speakers offered divergent views on the likelihood of rate cuts this year.

Economic Data

Yesterday’s economic data presented a mixed picture, with slightly better-than-feared GDP, but rising jobless claims and a sharp drop in pending home sales. 

• Q1 GDP (Preliminary): Revised to -0.2% annualized (vs. -0.3% advance reading and estimate). Personal Consumption +1.2% (vs. +1.8% advance). GDP Price Index +3.7% (in line). Core PCE Price Index +3.4% (below +3.5% advance and estimate). 
• Weekly Jobless Claims: Rose to 240,000 from 226,000 prior (above 230K est.). Continuing claims increased to 1.919 million. 
• Pending Home Sales (Apr): Fell sharply by -6.3% m/m (vs. -1.0% consensus). Declined -2.5% year-over-year. 

Commodities, Currencies, and Treasuries 

Gold prices (August contract) rose $21.50 (+0.65%) to settle at $3,343.90 per ounce, benefiting from a weaker U.S. dollar and ongoing safe-haven demand amid the trade and policy uncertainties. Crude oil prices fell, with WTI down $0.90 (-1.46%) to $60.94/bbl. Concerns about OPEC+ potentially increasing output in July weighed on sentiment, despite the broader risk-on mood in equities. The U.S. dollar index (DXY) dropped -0.6% to 99.28, weakening against the Euro and Yen as Treasury yields fell and trade uncertainty persisted despite the court ruling. Treasury yields declined significantly across the curve, with the 10-year yield falling over 5 basis points to 4.428% after hitting highs near 4.54% earlier. The drop was fueled by the weaker GDP data and a very strong 7-year Treasury note auction that saw robust demand, particularly from indirect bidders (foreigners). Bitcoin prices tumbled late day.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	-0.9	USD/bbl	60.94
Brent	-0.75	USD/bbl	64.15
Gold	21.5	USD/oz	3343.9
EUR/USD	0.0083	USD	1.1375
USD/JPY	-0.82	JPY	144
10-Year Note	-0.051	%	0.04428

Looking Ahead 

The market will continue to digest the implications of the court ruling on tariffs and the subsequent appeals process. All eyes will be on tomorrow’s April Core PCE inflation report, the Fed’s preferred inflation gauge, which will be critical for shaping expectations for future monetary policy. Any further comments from Fed officials or developments on the trade front will also be closely watched. The significant drop in Treasury yields today despite the stock market rally suggests underlying caution and focus on potential economic slowing.