Trade tensions eased and drove an equity rally, but the Moody’s downgrade over the weekend may change the narrative.

U.S. equities and treasury yields were mixed as odds of a June rate cut fell due to the unknown impact of tariffs on inflation and solid labor.

The S&P 500 returned to pre-Liberation Day levels while yields rose on lower rate cut expectations.

Trade remained the focus for markets although fears lessened throughout the week, helping to lead the markets higher.

Lower-than-expected inflation numbers drove a rotation from large growth toward small value stocks and a sharp drop in short duration bond yields.