Markets popped the confetti this week. Is the hype with merit or is it too early to celebrate?
Monday
S&P 500 2.36% | NASDAQ 2.55%
In an otherwise uneventful day for data, markets moved south after criticism by the Administration about Federal Reserve policy. The Central Bank, however, is an independent body with a specific mandate of maximum employment and stable prices.
Tuesday
S&P 500 2.51% | NASDAQ 2.71%
Markets erased previous day’s losses following news of easing trade tensions with the U.S. and China. Recent patterns have indicated “a deal” between the two largest economies could be an outcome. Negotiations, however, are still uncertain.
Wednesday
S&P 500 1.67% | NASDAQ 2.50%
Markets continued their climb as the sustainability of tariffs were called into question between the U.S. and China. The dollar caught a bid, the 10-year treasury fell, and equity markets moved higher.
Thursday
S&P 500 2.03% | NASDAQ 2.74%
Corporate earnings shined a light on the tech sector as the NASDAQ popped with the S&P500 following close behind. Durable goods orders jumped sharply, which has been linked to the anticipation of tariff policies. The S&P500 exited correction territory at the close.
Friday
S&P 500 0.74% | NASDAQ 1.26%
Friday capped off a solid trading week as markets digested further survey data. Consumer sentiment rose for the first time since early January 2025, avoiding a bearish reading put out by the U.S. Michigan Consumer Sentiment Index.
Conclusion
S&P 500 4.59% | NASDAQ 6.73%
Markets celebrated comments from officials regarding the direction of tariffs this week. The trade war impact has created a higher magnitude of uncertainty, but risk-on assets approved of recent developments in international dialogue. While tariffs continue to overshadow the macro climate, corporate earnings are rolling in and willing buyers are looking for opportunities in a sold off market environment. Volatility pulled back even more this week as investors look at Q1 GDP figures coming out next week. We may see a rally with the loosening of tariff policy and stronger than expected earnings reports in the coming weeks.
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