Lots of headlines are moving major indices today. Starting from Fed Goolsbee, this morning, who noted that we are going in a “stagflationary direction” and rates can likely come down if tariffs are avoided. Later this afternoon, the Fed released a statement announcing Fed Chair Powell and Trump met at the White House today.

In addition, a federal judge in Washington has paused the tariff order for 14 days. The White House is soon starting a press briefing to give the latest updates on tariffs and immigration policies.

Notably, despite the seesaw move in the market, Nvidia (NVDA) continues to hold its gains, after reporting earnings yesterday.

Four sectors are in the green, with Real Estate (XLRE) leading the way. Communication Services (XLC) is the laggard, with every stock in the ETF moving lower, except for Meta Platforms (META).

Economic Data

Q1 GDP was revised higher to an annualized rate of -0.2% from the initial estimate of -0.3%. The revision is attributed to stronger fixed investments. This was partially offset by weaker consumer spending, and a larger drag from trade, as businesses and consumers stockpile ahead of tariffs.

Personal Consumption Expenditures (PCE) was revised to a 3.4% QoQ increase in Q1 from an advanced estimate of 3.5% and the prior quarter’s 2.6% rise.

April pending home sales fell the most in one year, declining to -6.3% M/M and missing consensus of -1%. According to NAR Chief Economist Lawrence Yun, "At this critical stage of the housing market, it is all about mortgage rates. Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market."