U.S. equity markets notched further gains in last week’s holiday shortened trading despite continued volatility in trade headlines including a key judicial ruling on President Trump’s tariff authority, which sparked sharp market swings.

U.S. equites posted strong gains for the week, as investor sentiment improved amid easing trade tensions and positive economic indicators.

Markets are off to a strong start this week, boosted by news that the U.S. and China have agreed to sharply reduce tariffs for 90 days to allow time for renewed trade negotiations.

U.S. equities continued to rebound higher last week with support from solid corporate earnings reports, resilient labor market data, and rising optimism for a gradual de-escalation in trade tensions, though hard details on trade deals remain sparse and new tariff announcements are keeping a lid on investor enthusiasm.

U.S. equities managed to rally back sharply last week and recoup some of the year-to-date losses as the White House signaled potential to de-escalate in the trade war against China, and President Trump walked back his comments about the potential to fire Fed Chairman Jerome Powell.