Big Bounce in Markets on Tamed-Down Tariff Proposals

Market Overview - President Trump's indication that the upcoming tariff policy may be less severe than previously expected has positively influenced market sentiment, leading to significant gains in major indexes [1] - The Dow increased by 597 points (+1.42%), the S&P 500 rose by 100 points (+1.76%), the Nasdaq surged by 404 points (+2.27%), and the Russell 2000 gained 52 points (+2.57%) [2] Bond Market - Bond yields have increased, with the 10-year yield rising to 4.338% (up 4 basis points) and the 2-year yield reaching 4.041% [3] Economic Indicators - The S&P flash U.S. Services PMI for March improved to 54.3, marking a three-month high, while the Manufacturing PMI fell to 49.8, the lowest since December [4][5] - The decline in Manufacturing PMI may indicate businesses are pulling forward activity ahead of the anticipated tariffs, as exports showed the slowest decline in nine months [5] Company Performance - KB Home reported fiscal Q1 earnings of $1.49 per share, missing the consensus estimate of $1.56 and down from $1.76 in the same quarter last year, with revenues of $1.39 billion falling short of the expected $1.50 billion [6] - The company cited affordability concerns due to high mortgage rates and potential tariff impacts on construction costs, leading to a reduction in revenue guidance [7] Upcoming Economic Data - Upcoming releases include Case-Shiller Home Prices for January and New Home Sales for February, both expected to show month-over-month improvements [8]