Forbes·2025-05-28 13:05Market Overview - Stocks experienced a broad rally, with the S&P 500 gaining 2%, Nasdaq Composite and Russell 2000 up by 2.5%, and Dow Jones Industrial Average increasing by 1.8% following trade and tariff developments [1] - The divergence between equities and bonds is notable, as stocks are approximately 3.5% off all-time highs while bond yields remain elevated, with 30-year bonds yielding just under 5% and 10-year bonds at 4.47% [3] Earnings Reports - Macy's reported better-than-expected earnings and sales for the first quarter but warned of tariff headwinds and cut its profit outlook [4] - Salesforce announced an $8 billion acquisition of Informatica, a strategic move into Artificial Intelligence (AI), ahead of its earnings report [4] - Nvidia's stock has been volatile, dropping nearly 50% from a January high of $153 to a low of $86 in April, but has since rebounded to $135 [5] Federal Reserve Insights - The upcoming release of the Federal Reserve Open Market Committee (FOMC) meeting minutes is anticipated, with investors keen to understand the Fed's stance on interest rates in light of current tariffs [6] - Fed Chairman Powell has shown reluctance to cut rates due to economic uncertainty, which is expected to be reflected in the minutes [6] Market Sentiment - The market is largely focused on Nvidia's earnings announcement, which is expected to influence not only the chip sector but the broader market as well [7] - Despite a rally in equities, the VIX remains above its historical average, indicating potential for continued volatility [7]