On the heels of the Osaka trade truce struck between Donald Trump and Xi Jinping over the weekend, investors got the relief rally they were looking for on Monday. Gains were especially pronounced in tech and chip stocks, which surged thanks to the Trump administration's softer approach to the Huawei ban.
Despite ostensible progress on trade, the narrative around the Fed (and central banks more generally) has not changed. If anything, the case for further monetary accommodation has grown in light of abysmal PMI data out Monday. Although manufacturing gauges held up ok in the