Markets moved higher to cap off the week. Will tariff negotiations become a new norm or will they be delayed just a little bit longer?
Monday
S&P 500 0.67% | NASDAQ 0.98%
Markets started the week with news of tariffs but that did little to distract indexes from moving higher. There is growing sentiment that tariffs may not be as broad as originally thought
Tuesday
S&P 500 0.03% | NASDAQ -0.36%
Markets were even-keel on the day except for tech stocks showing more movement. The subdued feel was likely due to all eyes waiting on the Consumer Price Index data to be released on Wednesday.
Wednesday
S&P 500 -0.27% | NASDAQ 0.03%
Prices showed a reversal of recent trends after increasing in January. The Federal Reserve has indicated that there would need to be multiple months of increases to justify any change in monetary policy, which kept markets at ease.
Thursday
S&P 500 1.04% | NASDAQ 1.50%
Markets appeared to celebrate the more deliberate approach to imposing reciprocal tariffs. President Trump signed an executive order that assigned agencies to review new and/or additional tariffs on specific nations.
Friday
S&P 500 -0.01% | NASDAQ 0.41%
Retail sales fell in January as data shows household debt continues to skyrocket but defaults are still below pre-pandemic levels. Sales inform profits and this may be a sign that if one slows, so will the other.
Conclusion
S&P 500 1.47% | NASDAQ 2.58%
In a market environment where not everything works in unison, this week proved to be more optimistic with a penchant for growth in equity markets. Although valuations remain high and signs of viable inflation concerns continue, there is a growing sentiment to continue the growth train, at least for now. Markets have started to breathe easier as the threat of tariffs remains high but with a delayed, and less aggressive, implementation horizon. Volatility measures have subsided over the last two weeks, but things could get a little high-strung in the coming months if price adjustments don’t show signs of cooling.
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