The Knowing – Daily Market Recap + Tomorrow’s Edge

📊 Market Recap

• S&P 500 (SPX): +2.0% to 5,921.54

• Nasdaq Composite (IXIC): +2.5% to 19,199.16

• Dow Jones (DIA): +1.8% to 42,343.65

• Russell 2000 (IWM): +2.5% to 2,090.40 AP News+1WTOP News+1WTOP News+1AP News+1

Markets surged today following President Trump's announcement delaying a 50% tariff on European Union imports, coupled with a rebound in consumer confidence. NerdWallet+9AP News+9The Washington Post+9

📰 News That Moved the Market

• Tariff Delay: President Trump postponed the implementation of a 50% tariff on EU goods, easing trade tensions and boosting investor sentiment. TradeVision+10AP News+10The Washington Post+10

• Consumer Confidence Rebounds: The Conference Board's Consumer Confidence Index rose to 98.0 in May, up from 85.7 in April, indicating increased optimism about the economy. The Conference Board

🗓 What’s Coming Tomorrow

• 10:00 AM ET: Richmond Fed Manufacturing Index (May) Federal Reserve Bank of New York+18Scotiabank+18Yahoo Finance+18

• Earnings Reports:

  • Morning: Dick's Sporting Goods (DKS), AutoZone (AZO), Bank of Nova Scotia (BNS), Bank of Montreal (BMO)

  • After Hours: Heico (HEI), Okta (OKTA), UiPath (PATH), Box (BOX), American Eagle (AEO)

💡 One Thing to Know

The "Super Six" period—the last three trading days of May and the first three of June—is historically associated with increased market inflows as institutional investors adjust portfolios. Today's rally could be the beginning of this seasonal trend.

We’ve now entered the Summer Season — a time historically known for choppy market behavior.

You won’t often see long, clean trends lasting for days or weeks. Instead, expect shorter bursts, quick reversals, and more range-bound price action.

That means swing traders may need to scale back or shift focus to shorter time frames and daily chart setups. In summer, the edge often goes to those who stay nimble.

📈 Options Insight (Not Financial Advice)

With major indices breaking above recent resistance levels on strong volume, bullish momentum may continue. Traders might consider long call strategies, keeping an eye on key support levels for potential reversals.

👀 What to Watch Tomorrow

• Small-Cap Performance: The Russell 2000's strong performance today suggests a shift towards risk-on sentiment. Continued strength could indicate broader market confidence.

• Tech Sector: Monitor tech stocks for follow-through after today's gains, especially with upcoming earnings reports from key players.

📌 Simple Seasonal Tip

As we enter the "Super Six," be aware of potential increased volatility and opportunities. Historically, this period sees positive market performance due to institutional rebalancing.

🚀 Tools We Use

• TradingView: Our go-to platform for real-time charts and technical analysis.