Markets came out fast to start the week and ended solidly in the green. Does the economy still have some room to run?
Monday
S&P 500 3.26% | NASDAQ 4.35%
Investors poured into equities after the weekend negotiations between the U.S. and China on tariffs resulted in lower tariffs for 90 days. The deal would allow for more time to discuss the direction of trade between the world powers.
Tuesday
S&P 500 0.72% | NASDAQ 1.61%
Markets continued to climb higher, particularly in the tech space, as trade tensions have eased over the past few days. Consumer Price Index (Apr) data was released indicating price increases were lower than expected. The S&P500 erased all losses for 2025 on the day in a major recovery from its lows dating back to the 2nd week of April.
Wednesday
S&P 500 0.10% | NASDAQ 0.72%
The broad markets moved higher through mid-week. Artificial intelligence (AI) stocks got a boost after channels were opening for international partnerships.
Thursday
S&P 500 0.41% | NASDAQ 0.18%
The S&P500 led the way after the NASDAQ lost steam through the close. The Producer Price Index (PPI) data came in lower than forecasts and retail sales were positive. Both show little cracks in the estimates of any increasing price pressures from tariffs for both producers and consumers, at least for now.
Friday
S&P 500 0.70% | NASDAQ 0.52%
Markets rose even higher with the S&P500 capping off the week with no negative trading days. Trading brushed off weak consumer sentiment data and news released by Wal-Mart stating they plan to increase their prices.
Conclusion
S&P 500 5.27% | NASDAQ 7.15%
The week was full of positives as trading momentum was unabated for the major indexes through Friday. The surge was attributed to news on international trade progress and acceptable consumer/producer prices increases (not above forecasts). The S&P500 and NASDAQ erased their 2025 losses after a tumultuous month of April. The China negotiations provided a 3-month window to allow for progress on tariff discussions. Gross Domestic product forecasts are estimated to reflect normal production for the quarter as we cross the midway point of the 2nd quarter. A rebound in trade has been welcomed given the cloud of uncertainty so far this year. There are still questions about whether we will meet another inflection point but signs of significant tariff impacts are not yet reflected fully in the data. The summer months may just provide additional room to run until trade policy is fully implemented.
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