The stock market notched a second-straight solid session on Wednesday, buoyed by more hints that the Trump administration may soften its approach on tariffs, but it might take something more substantive for this rebound to turn into a true rally. At its highs of the session, the S & P 500 topped out near 5,470. Even on up days during the last few volatile weeks, the market has failed to get back to the 5,500 level, which is close to its pre-April 2 low from March. .SPX 3M mountain The S & P 500 has failed to retake the 5,500 level during recent pushes higher. That number is starting to catch the eye of chart experts. Roth chief technical strategist JC O’Hara identified 5,500 as a “line in the sand” earlier this week. Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, said in a note Wednesday that closing above the mark would be a “constructive trend signal.” And just like the market has struggled to find new territory, the tariff situation also seems a bit rangebound. While Treasury Secretary Scott Bessent said Wednesday that the U.S. and China have an “opportunity for a big deal, ” there’s no indication that serious talks have even begun, much less that a deal is close. That slow-moving situation, combined with the fact that the first-quarter earnings reports reflect mostly a pre-tariff environment and a Federal Reserve that is not inclined to cut rates soon, means that investors may be waiting a while on the next substantial market catalyst. “I think it’s more wait-and-see, unless you believe that the tariffs are going to dramatically change in the next few weeks and that it’s not going to have an impact on the economy,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “Look, I think bottoming is a process, especially when you don’t have the Federal Reserve riding to the rescue like they have during past economic storms.” Patience may be a virtue, but in the meantime a lot of companies and other parts of the economy may begin to strain under even the threat of tariffs. The Fed’s latest “Beige Book” report showed that some companies are already starting to pass the cost of tariffs on to customers. “I hear the commentary that perhaps tariff uncertainty has reached a peak. But I don’t think that means that economic and market uncertainty have reached a peak yet,” Schutte added. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited! — CNBC’s Jeff Cox and Michael Bloom contributed reporting.
The stock market may need more than optimism on tariff talks to break through this key level
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