Stocks closed lower yesterday, but off their intraday lows, filling in the gap left on the chart from Thursday's gap-higher open.

Market was due for a little bit of profit taking after two back-to-back weekly gains.

Some tariff comments by President Trump and Treasury Secretary Scott Bessent provided the perfect catalysts to do so.

Mr. Bessent said that the U.S. was close to signing several trade deals before the July 9^th deadline (the end of the 90-day tariff pause). The belief is that a deal with India and the European Union could be next.

But he also said that the President will be sending out letters to approximately 100 smaller trading partners, letting them know they would face higher tariff rates come August 1. These countries can "move things along" (on negotiating a trade deal) to avoid higher rates if they choose. If not, they will revert to the rates that were previously announced back on April 2^nd.

Although, it's important to note what he said previously; that the President was open to extending the 90-day pause on reciprocal tariffs to those who have shown "good faith" in ongoing trade negotiations.

Nonetheless, the 7/9 deadline, which is fast approaching, made the market take notice.

The President also commented on higher tariffs for the BRICS countries (those who have joined the group, which gets its name from the founding countries Brazil, Russia, India, China and South Africa). It also includes Indonesia, Iran, Egypt Ethiopia and the United Arab Emirates. Mr. Trump said "any country aligning themselves with the anti-American policies of BRICS, will be charged an additional 10% tariff. There will be no exceptions to this policy."

Aside from the tariff news, the market has been riding high on generally easing inflation, a resilient economy, strong corporate earnings, and a better-than-expected labor market, which was further underscored by last Thursday's Employment Situation report which showed 147,000 job gains vs. the consensus for 110,000.

Q2 earnings season is right around the corner. And since stocks typically go up during earnings season, there's plenty of excitement for the market to extend their gains even further.

There could be some volatility over the next few days given the 7/9 tariff deadline. But a few deal announcements with some large trading partners could just as easily energize the market and send it even higher.

And if earnings can impress again like they did last quarter, we could be off to the races.

Remember, I'm expecting a 20%+ gain this year. For all of the reasons outlined above, not to mention the AI boom that we are in the midst of.

So make sure you're taking full advantage of it.

See you tomorrow,