Early gains for the stock market gave investors home, however, those gains couldn’t be managed after a great durable-goods data report. The released data found U.S. durable-goods orders rose by 0.7% in May, beating the wall street forecast of 0.2%.

“The surprisingly robust 0.7% rise in durable goods orders last month was much better than some of the downbeat survey evidence had suggested and is consistent with business equipment investment growth slowing in the second quarter rather than going into reverse.

The S&P 500 is nearly 8% up from its lows at the start of the month and rallied 3% on Friday. Helping the rally has no doubt been last week’s re-pricing of tightening cycles around the world where 25-50 basis points of expected tightening were removed from some money market curves in just a few days. Driving that pricing seemed to be the much broader discussion — including from Federal Reserve Chair Jerome Powell — over the risks of a recession.”

ING Analysts wrote.

Last week, lawmakers were warned that a soft landing for the economy would be very challenging. Credit Suisse strategists explained that bond yields may have seen their peak. Lead indicators are:

• Consistent with 0% GDP growth

• The collapse in housing affordability

• The weakness of corporate confidence

• The weakness in the employment gauge of the Institue for Supply Management manufacturing index

According to Marko Kolanovic, a JPMorgan quantitative strategist, the market could rise 7% this week. The rebalance of portfolio effects has already played out near the end of Q1.

Read more on the economic data HERE