Stocks Gain Amidst Volatile Week; Bonds Roughly Flat
Good morning,
The Dow (0.3%), NASDAQ (1.5%), and S&P 500 (1.1%) all finished higher last week. Meanwhile, taxable bonds lost about 0.2% and tax-free municipal bonds were roughly flat. The 10-year Treasury yield rose fractionally to finish the week at 4.08%.
Markets also reacted to the Supreme Court of the United States decision striking down President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by a 6–3 vote. The initial market response was modestly positive, as investors largely expected the ruling. However, the decision leaves several unanswered questions surrounding existing trade agreements and potential policy responses going forward. As legal and political challenges unfold, periods of increased market volatility would not be surprising.
Economic data took center stage once again. Minutes from the Federal Reserve’s most recent meeting highlighted a growing divide among policymakers after moderating economic momentum following the government shutdown and softer consumer spending. Overall, the data reflects an economy that continues to grow but faces competing inflation and growth risks, contributing to increased division among Federal Reserve officials and creating more uncertainty than usual surrounding the path of interest rates, particularly with a new Fed Chairman set to take office.
Have a great day and terrific week!
Source: Yahoo Finance
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The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
