See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week trial to Bespoke Premium.  CLICK HERE to learn more and start your trial.

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D. Rockefeller

Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.  

The S&P 500 rose 3.26% to start the week, which was its biggest Monday gain since April 6th, 2020 when the index rose 7.0% on weekend headlines that the rate of COVID infections was slowing and lockdowns might start to ease.

Yesterday’s rally was driven by an agreement between the US and China to pause steep reciprocal tariffs of 100%+ for at least the next 90 days.  The best performing stocks yesterday were names that got hit the hardest during the post-“Liberation Day” crash from April 2nd to April 8th.  The worst were the ones that held up best during the Trump-tariff crash.  You can see this in the chart below that breaks the S&P into deciles (10 groups of 50 stocks each) based on performance from 4/2 to 4/8.  The bars show the average performance yesterday of the stocks in each decile.  The three deciles of stocks that did the worst during the tariff crash from 4/2 to 4/8 saw average gains of more than 5% yesterday.  The 50 stocks that held up the best from 4/2 to 4/8 actually fell an average of 0.95% yesterday.  This clearly highlights yesterday’s rotation out of tariff resistant names into tariff exposed names.

It has taken a gain of more than 17% off the lows for the S&P 500 to finally tick back up into overbought territory: