At 2 PM Eastern, the FOMC meeting minutes were released, and at first glance, they didn’t give traders much to chew on. But just 10 minutes later, the rally began.
As of publishing time:
- The S&P 500 futures (/ES) have hit a new all-time high, taking out the previous high from mid-December and setting a fresh YTD high.
- The Dow (/YM) and Nasdaq (/NQ) are still below their all-time highs, but they’re continuing to push toward key resistance levels.
- The European markets, on the other hand, are taking a hit, with the Germany’s DAX and the broader European DEX (Euro Stoxx 50) — this year’s strongest performers up 14% year-to-date — getting hammered after Trump announced a 25% tariff on auto and pharmaceutical imports from Europe, set for April.
This tariff news puts pressure on European manufacturers, and we’re already seeing a major reaction overseas. Meanwhile, the U.S. markets don’t seem to care — yet…?
So, What’s Next?
With the S&P leading the way, will the Dow and Nasdaq follow with their own breakout highs? Or will this rally hit a wall?
Commodities, for now, have been a dud, but one stock that has been moving — even while the broader market waffled — is Deere (DE). So keep an eye on that one.
I’ll be watching closely to see if this momentum holds. If you want to stay ahead of the next move, make sure to save your spot for my FREE Market Radar session tomorrow at 11am Eastern where I’ll cover the overnight developments with this rally and more.
Stay sharp,
— Geof Smith
P.S. Right now President Trump is threatening to cut US oil imports from Venezuela… Remember high school economics? When supply goes down, prices go… up! No matter how this all plays out, here’s how I’m positioning myself to take advantage of the situation!
