Group 1 - The current trade policies are significant drivers of market performance, with the S&P 500 index experiencing a 2% increase on May 27, marking its largest single-day gain since May 12, reflecting easing tensions between the US and EU [1] - Following a threat from Trump to impose a 50% tariff on the EU, the market reacted negatively, but a subsequent phone call with EU Commission President Ursula von der Leyen led to a postponement of tariffs until July 9, resulting in a strong market rebound [1] - On May 27, the Dow Jones rose over 700 points, the S&P 500 increased by over 2%, and the Nasdaq led with a 2.5% gain, while the 10-year US Treasury yield fell to 4.432% [1] Group 2 - Investors are optimistic that the tense trade situation has eased, with some believing that the most severe trade tensions have dissipated, suggesting that significant market declines are unlikely in the short term [2] - Economic data released on May 27, including a rebound in consumer confidence and lower-than-expected decline in durable goods demand, contributed to investor optimism [2] - Despite the market's mild recovery, concerns exist regarding overly optimistic sentiment, as tariffs have already negatively impacted the economy, with the adjusted GDP growth rate contracting by 0.3% in Q1 compared to a 2.4% increase in Q4 of the previous year [2] Group 3 - Citigroup's Chief Economist Nathan Sheets expressed concerns about Trump's aggressive tariff policies, predicting a global growth rate of 2.3% for the year, down from 2.8% last year, with developed markets particularly affected [3] - Sheets also indicated that the proposed tax legislation could keep the US deficit high, averaging around 6% of GDP over the next decade [3] - The Wall Street Journal noted that US stock valuations remain relatively high by historical standards, leading to a mismatch between market sentiment and uncertain economic outlook [3]