Bonds & Stocks
Stocks extended a rebound from one of the fastest slides on record, with traders gearing up for a key reading on consumer confidence for clues on the health of the economy amid concerns about the impact of US tariffs on inflation. The S&P 500 rose 0.2%. Most megacaps gained. The yield on 10- year Treasuries was little changed at 4.33%.
Economy
Federal Reserve Chair Jerome Powell said after the March FOMC meeting that inflation expectations remain anchored, and that tariffs are partly to blame for recent price increases. Recent data partly support his reassurances about expectations — but not entirely. It’s not clear that tariffs are behind the recent inflation surprises, as much of the increase in short-term inflation expectations appears to be driven by elevated food and commodity prices.
World
Senior foreign officials and major tech companies are pushing the Trump administration to rethink the country’s global semiconductor strategy, as the US prepares a controversial framework for controlling artificial intelligence development around the world. The so-called AI diffusion rule, which restricts the number of AI processors that can be exported to most nations, prompted an outcry from tech giants like Nvidia Corp. after Biden officials unveiled it during their last week in office.