US equity markets rallied as the markets put the recent 'tariff tantrum' behind them for now to focus on some more positive economic data - Dow up +337-points or +1.37%, recovering from an earlier >300-point slide to snap a four session losing streak in convincing fashion (with Nike down -1.3% the only index component to finish in the red). The broader S&P500 +30-points or +1.10%, with all 11 major sectors closing higher, with Financials and Utilities leading the broad-based gains. Financial stocks got a boost from Fed Governor Randall Quarles observing that regulators plan to swiftly make substantial changes to the Volcker rule, describing it as “an example of complex regulation that is not working well.” The Volcker rule is part of the Dodd-Frank overhaul of federal bank oversight and barred banks with access to the federal safety net from engaging in risky, speculative trading for their own account, known as proprietary trading. But it allowed an exemption for market making-related activities (and this is where much of the confusion lies). The technology-centric NASDAQ rose +1.00%. Amazon Inc (up +1.6%) was in the spotlight amid reports that it is in talks with banks, including JPMorgan Chase & Co, about building a checking-account service. There was ongoing commentary and noise around President Trump's tariff proposals. President Trump again took to Twitter to say that he would only lift planned tariffs on steel and aluminum imports if Mexico and Canada agree to sign a "new & fair North American Free Trade Agreement (NAFTA) agreement." However, House Speaker Paul Ryan broke with President Donald Trump over his decision to impose tariffs on imported aluminum and steel products, issuing an implicit warning to the White House to drop the plan.
