Playing “chicken” in the market can be a risky thing

When threatened, the birds blow their feathers, making them appear larger than the actual feathers and send an aggressive signal.

On Friday, U.S. President Donald Trump suggested that he would no longer be China's “good man” after the country “completely violated” its trade agreement with the United States. On the same day, Trump said he would raise tariffs on steel imports from 25% to 50%.

The escalation comes after a May extension, during which Trump reached a trade agreement with the UK, agreeing that Beijing significantly reduces mutual import taxes and delays EU tariffs for more than a month, which is the announcement of EU tariffs two days later.

Those happy news raised the stock. The 500 index rose 6.2%, while the Nasdaq composite rose 9.6%, both indexes enjoyed their best month since November 2023. The Dow Jones industrial average rose 3.9%.

However, according to White House communication, investors' moods may change quickly.

The word “chicken” is used as a metaphor for cowards. In fact, they can be dangerous – there are reports that humans were killed by the colonel's favorite bird.

Mixed the US market at the end of May
The U.S. market traded on Friday. this S&P 500 It's flat Dow Jones Industrial Average Up 0.13%, Nasdaq Composite Materials Less than 0.32%. Futures for three indexes were struck on Sunday night in the United States Sunday night. Pan-European Stoxx 600 The index rose 0.14% on Friday, breaking a two-day winning streak. Germany's Dax As inflation in the country fell to 2.1% from 2.2% last month, but climbed to 0.27%, but was still higher than expected.

Trump-XI talk is expected
National Economic Commission Director Kevin Hassett said on Sunday that Trump and Chinese President Xi Jinping can discuss trade talks. The conversation could ease tensions, Trump said on Friday that China “completely violated” the preliminary trade agreement with the United States, and that Liu Pengyu, a spokesman for the U.S. Embassy, ​​responded by accusing the United States of “abuse of export control measures.”

Trump says he will have double steel tariffs
Trump told steelworkers on Friday American Steel He will raise import tariffs on steel from 25% to 50%. The president will begin new import duties on June 4. The EU said on Saturday that it was “preparing for the latest tariff increase in the United States and preparing to take countermeasures.” Even so, U.S. Commerce Secretary Howard Lutnick said in Fox News Sunday: “Tariffs are not gone.”

Moderate U.S. inflation in April
The Fed's preferred inflation-style reading, the U.S. personal consumption expenditure index was muted in April. According to Dow Jones Jones' forecast, the price rose by 0.1%. Each year, it rose 2.1%, 0.1 percentage point lower than expected. In addition to food and energy, federal policy makers tend to focus on core readings of 0.1% and 2.5%, compared with corresponding estimates of 0.1% and 2.6%.

Musk cut himself through the door
Elon Musk bid farewell to his role on Friday in the U.S. government efficiency department. At the press conference, Musk leaned towards a reporter's question about an article in The New York Times, detailing his drug use last year. Tesla Shares lost 14% this year due to Musk's involvement in politics, but in Musk's April statement, they earned 22% in May.

(Pro) Possible Work Key Report
The U.S. non-agricultural salary report (May) will provide more information on how Trump’s multiple tariffs are economically, and play a major role in determining whether stocks still have legs in May. Economists expect increased workloads to drop from April. It missed the forecast, and markets could fall when the White House appears to have increased tariff rhetoric.

Investors are stacking large Treasury bets with Warren Buffett

Investors always keep an eye on bonds, and the latest prices and yields say about the economy. Currently, the action tells investors to stick to the shorter end of the fixed income market with their maturity.

Todd Sohn, senior ETF and technical strategist at Pratemonals Securities for “ETF Edge”, said long-term treasury and long-term corporate bonds were very rare since September.

He added that the only time that happened in modern times was during the financial crisis.

According to a recent JPMorgan report, Warren Buffett agreed that Berkshire Hathaway doubled its ownership and now owns 5% of all short-term Treasury departments.