Stocks Post Strong Gains; Investors Eye Tariff Impact
Good morning,
The Dow (+1.3%), NASDAQ (+3.9%), and S&P 500 (+2.4%) all posted strong gains last week, with the tech-heavy NASDAQ leading the charge. Meanwhile, bonds were mixed, as taxable bonds slipped 0.2% while tax-free municipal bonds rose 0.2%. The 10-year Treasury yield climbed 0.07% to finish the week at 4.28%.
Economic data was light last week, with the only notable release being the weekly unemployment report. The real headline was tariffs, as we saw broad implementation across the globe, generally in the 10–15% range. While negotiations will continue, many believe these are the steepest tariff levels most countries will face. On the jobs front, new unemployment claims ticked higher, and continuing claims also rose from the prior week. This suggests employers remain cautious about adding to payrolls but are not yet looking to cut existing staff. The true economic and market impact of these tariffs will likely become clearer in the weeks and months ahead.
This week will bring several key economic reports, including the Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales. CPI and PPI will give an updated read on inflation, while retail sales serve as a key measure of the U.S. consumer’s health. Investors will be watching closely to see how tariffs are influencing both prices and consumer behavior.
Have a great day and a terrific week!
Source: Yahoo Finance
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The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
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.
