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Good morning investors, The market's recent winning streak has come to an end. Stocks are poised to open lower today as Treasury yields climb and the fragile trade truce between the US and China shows signs of strain. Is the rally losing steam, or is this just a brief pause in the recovery? US-China Trade Thaw Turns Frosty Futures are pointing to a significant pullback this morning, with Dow futures down 201 points (0.5%), S&P 500 futures falling 0.6%, and Nasdaq 100 futures also declining 0

Good morning investors, The market's recent winning streak has come to an end. Stocks are poised to open lower today as Treasury yields climb and the fragile trade truce between the US and China shows signs of strain. Is the rally losing steam, or is this just a brief pause in the recovery? US-China Trade Thaw Turns Frosty Futures are pointing to a significant pullback this morning, with Dow futures down 201 points (0.5%), S&P 500 futures falling 0.6%, and Nasdaq 100 futures also declining 0.6%. Yesterday's session already snapped a six-day winning streak for the S&P 500 amid losses in Big Tech stocks. The brief euphoria following the 90-day tariff pause between the US and China is rapidly fading. China's Commerce Ministry has threatened legal action against any organization or individual assisting the US in discouraging the use of China's advanced semiconductors—a direct response to the US Commerce Department's warning (later removed) that using Huawei chips anywhere would violate export controls. This exchange of barbs casts a shadow over trade relations just a week after markets celebrated what appeared to be a breakthrough. Meanwhile, the real-world impact of tariffs is already evident—Chinese shipments of Apple's iPhone to the US fell to their lowest since 2011 in April, and the Port of Los Angeles saw shipments drop by up to 30% in early May. Business Leaders Sound the Alarm Top executives are increasingly vocal about tariff concerns. JPMorgan CEO Jamie Dimon warned Monday that markets are underestimating the long-term impact of tariffs, calling the current duties "pretty extreme." Citigroup's Jane Fraser echoed this sentiment, noting companies are delaying investments amid tariff uncertainty. Treasury Secretary Scott Bessent has maintained a firm stance, saying tariff rates will revert to "reciprocal" levels if countries don't make trade deals during the 90-day pause. "President Trump has put them on notice that if you do not negotiate in good faith, you will ratchet back up to your April 2 level," Bessent told CNN. Rising Treasury Yields Weigh on Stocks Long-term US debt has been selling off as the Republican Congress advances a new tax bill that could add $3.3 trillion to the deficit over the next decade. The benchmark 10-year Treasury yield has climbed to 4.522%, while the dollar index has weakened to 99.65, its lowest level in two weeks. "Amid limited data to work with, the market discussion can remain centered on the US fiscal trajectory for now," noted ING analyst Benjamin Schroeder. "On Wednesday, the Treasury's 20-year bond sale might garner more attention than usual to gauge investor appetite for U.S. credit." Trump Unveils "Golden Dome" Missile Defense In other news, President Trump has formally introduced his concept for the "Golden Dome," a proposed $175 billion missile defense initiative that would, for the first time, incorporate US weaponry in space. Trump anticipates the system could be "fully operational" by 2029, though officials familiar with the planning suggest partial readiness is more realistic given the technological complexity. China has expressed "serious concern" over the proposed defense system, adding another layer of tension to already-strained relations. International Developments Global tensions continue to simmer on multiple fronts: Ukraine has pitched a tougher Russia sanctions plan to the EU as US support wavers, while Putin has visited the Kursk region for the first time since ejecting Ukrainian forces. Iran's parliament has approved a strategic pact with Russia, as Pakistan and China agree to deepen trade relations. A suicide blast targeting a school bus has killed five in Pakistan's Balochistan province, and airstrikes have killed dozens in Gaza as criticism of Israel grows. Dollar Weakens as G-7 Meeting Approaches The Bloomberg Dollar Spot Index has dropped 0.5%, marking its third straight decline, as traders await a Group-of-Seven meeting this week for signs the Trump administration is seeking a weaker US dollar. Options markets reflect the shift, with one-month sentiment turning the most bearish in five years. Japanese Finance Minister Katsunobu Kato said he will seek an opportunity for currency talks with US counterpart Scott Bessent amid speculation that the Trump administration is open to a weaker greenback. European Economic Challenges Inflation in the UK spiked to its highest level in more than a year in April, reaching 3.5% amid a raft of higher domestic bills like energy and water. This exceeded expectations for a more modest increase to 3.3%. Meanwhile, Germany's economy is expected to stagnate this year as the country faces headwinds from Trump's tariffs, according to the government's panel of independent economic advisers. The advisory panel predicted the economy will grow by just 1% in 2026, after five years without significant economic growth. In more positive news for Europe, Paris has been named as the new European tech champion, beating London for the first time on some metrics, according to data from Dealroom. Corporate Developments Medical device maker Medtronic is reportedly planning to separate its diabetes business into a stand-alone company with around 8,000 employees, to be completed within 18 months. Russia's largest oil producer Rosneft has acquired Tomtor, the country's largest rare earth metal deposit, a key project in Russia's plans to reduce reliance on imports from China for metals used in defense, mobile phones, and electric cars. European Central Bank supervisors are analyzing the dollar exposure of euro zone banks but expressed confidence that the US Federal Reserve will continue to supply liquidity at times of stress, despite Trump's recent attacks on the Fed's independence. What's Your Next Move? With the US-China trade truce showing cracks and Treasury yields rising on deficit concerns, investors face renewed uncertainty after the recent rally. The market's swift rebound from April's sell-off may now face a test of its resilience. Is this a buying opportunity or a warning sign? As tensions resurface and economic data presents a mixed picture, maintaining a balanced portfolio with exposure to sectors less vulnerable to trade disruptions may be prudent. Keep an eye on today's retail earnings for insights into how tariffs are impacting consumer-facing businesses. TriTrader Dominates Again! Our TriTrader Indicator continues to crush the market — especially in forex. The recent USDCAD move? We tracked it from buys to sells with precision. Don’t sit on the sidelines. Start catching those intraday moves today. 👉 Tap in now and take control with TriTrader! Until tomorrow, FindBetterTrades Trading Strategy Guides © 2025 – Unsubscribe