Stock Market Update

[BRIEFING.COM] Thus far, it has been a rather uneventful trade in the stock market, largely because investors are waiting anxiously for a market-moving event this weekend. That event is the U.S.-China trade meeting in Switzerland between Treasury Secretary Bessent, U.S. Trade Representative Greer, and China's Vice Premier He Lifeng.

The intent, reportedly, is to de-escalate the situation by getting talks going and hopefully taking down the draconian tariff rates both sides have implemented. Press reports have suggested the Trump administration is considering taking the tariff rate below 60%, yet President Trump himself suggested in a Truth Social Post this morning that an 80% tariff on China seems right, while adding that it is up to Treasury Secretary Bessent.

That is much lower than the 145% tariff rate currently in effect for imports of Chinese goods, which has spurred some relative hope ahead of the discussions, but neither a 60% tariff rate nor an 80% tariff rate is good in an absolute sense.

The pervasive sense of uncertainty going into the meeting has kept conviction on the buy side and the sell side lacking in today's market. There are eight S&P 500 sectors trading lower, yet none are down more than 0.6%. The three sectors trading higher are energy (+0.7%), real estate (+0.3%), and consumer discretionary (+0.2%).

Market rates are holding pretty tight, too. The 2-yr note yield is down two basis points to 3.87%, and the 10-yr note yield is unchanged at 4.37%. 

There was no U.S. economic data of note today, but the market has been digesting a stream of earnings results since yesterday's close that followed some mixed lines. Microchip Technology (MCHP 54.48, +5.34, +10.9%) has been a big mover after providing better-than-expected fiscal Q1 revenue guidance, while Expedia (EXPE 154.76, -14.23, -8.4%) has been a big loser after issuing disappointing Q2 revenue guidance and acknowledging that it is seeing weaker-than-expected travel demand in the U.S. and into the U.S.

At this juncture, the major indices are all down between 0.2% and 0.5%.