Friday proved to be a solid session, made even more impressive ahead of a three-day weekend.

Factors

Green was present across most factors, with the strongest performance in small revenue names. That’s somewhat peculiar, but there is a treasure hunt going on, and nothing looks cheaper than quality small-cap names.

Living with Uncertainty

We entered the weekend with record-shattering uncertainty in several areas, including economic, trade, and fiscal policy.

Fear Ebbing

The Fear Gauge is pulling back but remains elevated to the point that many say it guarantees more weakness. I don’t buy that, but looking at all metrics and gauges is important.

This is going to be a long week. I’m hoping for greater clarity from the White House.

Today’s Session

The market opened under pressure from several sources.

Huawei will reportedly produce an AI chip that is supposedly capable of replacing Nvidia's (NVDA) H20 chips. It's doubtful they will be a pure replacement, but the news is pressuring shares of NVDA.

On the tariff front, there is lots of saber rattling. 

China is threatening nations.

Japan is saying it won’t totally surrender (this is actually a sign they are going to give in and make some compromises).

JAPAN WON’T YIELD TO ALL U.S. DEMANDS, ISHIBA SAYS

Prime Minister Shigeru Ishiba pushed back against U.S. pressure on trade, saying Japan, “won’t be able to secure our national interest,” if it concedes everything.  With the U.S. seeking more access to Japan’s auto and agriculture markets, Ishiba defended barriers protecting local farmers and said Tokyo wouldn’t rush into a deal just to ease Trump’s tariffs. Negotiators are prepping for a second round of talks before the end of April.

And then there’s the Trump–Powell riff. Such battles are not unusual despite the media’s coverage, and there are more legal authorities who believe Trump can terminate Powell. I worry about the timing.