What Happened?
Shares of department store chain Macy’s (NYSE: M) jumped 5.3% in the afternoon session after President Donald Trump softened his tone on trade relations with China.
The move came as U.S. stocks recovered a portion of the sharp losses from the previous trading session. Major indexes had tumbled after Trump previously threatened 'massive' tariffs on China. However, sentiment shifted after the President wrote in a social media post that 'it will all be fine' with China, easing investor concerns. The broader market responded positively, with the S&P 500, Dow Jones Industrial Average, and Nasdaq all posting gains as they rallied to recover from the earlier sell-off.
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What Is The Market Telling Us
Macy’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 2.6% as a confluence of negative economic data pointed to a weak economy.
The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect lower earnings growth, factors that directly impact discretionary spending.
Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. The ongoing U.S. government shutdown further dampens sentiment, threatening to weigh on incomes and purchasing power.
Macy's is up 4.9% since the beginning of the year, and at $17.37 per share, it is trading close to its 52-week high of $18.30 from October 2025. Investors who bought $1,000 worth of Macy’s shares 5 years ago would now be looking at an investment worth $2,833.
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