Key Points:
- S&P 500 closed at 5,761.17 after rising 1.8% Monday, the highest in over two weeks.
- Trump’s softer tone on tariffs lifted equities; April 2 deadline seen as flexible.
The S&P 500 hovered near 5,761 on Tuesday after a strong rally the previous day, fuelled by investor relief over President Trump’s latest tariff comments. On Monday, the index surged 1.8% to its highest level in over two weeks, closing at 5,761.17 after touching a session high of 5,778.05. Traders responded positively to Trump’s signal that not all proposed tariffs would be imposed on the April 2 deadline, softening the blow of his earlier warning about upcoming levies on autos, pharmaceuticals, and other key sectors.
The president’s remarks were interpreted as a sign of flexibility, which has temporarily reduced fears of a full-scale tariff wave. Equities rallied across the board, with European futures also pointing to a firmer open. The Euro STOXX 50 futures rose 0.2%, while London, Paris, and Frankfurt contracts were flat to up 0.3%, suggesting cautious optimism on the continent.
Technical Analysis
The SP500 chart reflects a strong upward move beginning on March 22, with price climbing steadily from the5600 zone to a peak of 5778.05 by early March 25. This rally was supported by consistent bullish momentum, as indicated by the widening MACD histogram and a bullish crossover that began during the ascent. The 5-, 10-, and 30-period moving averages remained in strong alignment during the run-up, reinforcing the trend strength.
Picture: SP500 pauses near recent highs as momentum cools, awaiting breakout or correction, as seen on the VT Markets app
However, since touching the 5778 level, the index has entered a narrow consolidation phase, with price flattening out and hovering around the 5760–5770 range. The MACD has also started to converge, suggesting a slowdown in momentum. While the overall structure remains bullish, traders may look for either a breakout above recent highs or signs of a pullback before determining the next directional move.
Tariff Timeline in Focus
While markets have reacted well to Trump’s softer language, the risk of sector-specific tariffs still looms. Traders are likely to stay defensive until there is clearer policy direction or confirmation that some levies will be delayed or scaled back.
In the meantime, the tech-heavy Nasdaq and Dow Jones Industrial Average are also showing resilience, supported by improving risk appetite and corporate earnings optimism. In Europe, Shell’s announcement of increased shareholder returns ahead of its capital markets day could offer a catalyst for energy sector gains.
Cautious Forecast for the S&P 500
In the near term, the S&P 500 is likely to range between 5,757 and 5,778, with further direction depending on incoming trade headlines. A break above 5,778 could open the path toward 5,800, while a failure to hold above 5,757 could prompt consolidation toward 5,730–5,700.
Traders should remain alert to tariff developments and central bank commentary, as both continue to drive the broader risk environment.
