Market Insights with Eric: Episode 48

Market Outlook: Post-Trade War Developments

Markets have largely absorbed recent developments, with a shift in policy tone and improved sentiment across equities and broader capital markets.

Technical Progress and Market Signals

• S&P 500 Breakout: The index has decisively broken above its 20-day moving average, clearing resistance levels last seen in February 2025.
• Volatility Decline: The VIX has dropped from highs near 60 to the low 20s following the 90-day pause announcement, indicating growing investor confidence.
• Treasury and Dollar Trends: The 10-year U.S. Treasury yield is retreating from its peak, while the U.S. dollar index is rebounding—both signaling stabilizing conditions.
• Inflation & Fed Policy: Easing inflation expectations provide the Federal Reserve with flexibility to cut rates if recession risks rise, a move typically welcomed by markets.
• Earnings Sentiment: Corporate earnings outlooks are improving on aggregate, suggesting resilience and optimism amid easing tariff concerns.

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Eric Parnell is solely an investment advisor representative of Great Valley Advisor Group, and not affiliated with LPL Financial. Any opinions or views expressed by Eric Parnell are his own and are not those of LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Economic forecasts set forth may not develop as predicted.

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