Markets came out of hibernation last week and were slightly lower this week. Are things starting to warm up?
Monday
S&P 500 0.64% | NASDAQ 0.74%
The week kicked off with a less enthusiastic start after the rebound from last week. Services data showed signs of strengthening in April which was a good sign for an economy that has been looking at GDP production amid tariff pressures.
Tuesday
S&P 500 0.77% | NASDAQ 0.87%
The U.S. Trade imbalance grew to its widest level to date. Economists attribute the disparity to companies anticipating tariff impacts on their businesses. Markets fell through the close.
Wednesday
S&P 500 0.43% | NASDAQ 0.27%
Mortgage applications popped after a few weeks of decline. The big news followed the announcement that interest rates will remain as-is according to the Federal Reserve. Rates were last cut in November 2024 as the Central Bank awaits more data on employment and inflation data.
Thursday
S&P 500 0.58% | NASDAQ 1.07%
Indexes moved higher following an optimistic tone by the Federal Reserve Chairman on Wednesday. Rates could still hover at a moderately restrictive level until the impacts of trade negotiations are resolved, which could go into the summer months.
Friday
S&P 500 0.07% | NASDAQ 0.00%
Markets were virtually flat on the day as little data was released. The trading week ended slightly lower but had some good moments considering recent volatility.
Conclusion
S&P 500 0.47% | NASDAQ 0.27%
Markets have arrived at another crossroad after trade negotiations continue to play out on the world stage or so we hope. Sentiment has indicated concern with the direction of inflation pressures that could result from a tariff war, but data still appears to show little cracking in the economy. Perhaps lower volatility shows a sense of calm barring any change in data released into the 2nd quarter. Projections are showing that more production will contribute to healthy growth for the quarter and that no drastic decisions are on the horizon by the Federal Reserve Bank. “Sell in May and go away” appears to not be taking shape this year as investors look to the odds of a less volatile summer. Is it possible that April’s showers may bring May flowers?
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