Weekly Market Update

Weekly Market Update

The market continues to navigate the complex landscape of trade tensions, economic data, and central bank decisions. Despite President Trump's renewed threats to impose tariffs on various countries, stocks remain near record highs.

Key Takeaways:
• Eight out of fourteen strategists tracked by Yahoo Finance predict the S&P 500 will close either flat or lower by year-end.
• RBC Capital Markets raised its year-end target for the S&P 500 to 6,250, but noted that this is essentially moving back to pre-tariff turmoil levels.
• The market remains sensitive to trade tensions, with stocks fluctuating in response to new tariff announcements and negotiations.

Market Performance:
• The S&P 500 (^GSPC) rose about 0.3% on Wednesday after President Trump said he's not planning to fire Fed Chair Jerome Powell.
• The Dow Jones Industrial Average (^DJI) climbed 0.5% on Thursday, while the S&P 500 and Nasdaq Composite (^IXIC) hit fresh record highs.

Economic Data:
• The Consumer Price Index (CPI) showed inflation accelerating in June, with a 2.7% year-over-year increase.
• The Producer Price Index (PPI) print for June came in unchanged on a monthly basis and rose 2.3% year over year.
• Retail sales rebounded in June, indicating that Trump's tariffs are not significantly impacting consumer spending habits yet.

Central Bank Decisions:
• President Trump continues to criticize Fed Chair Jerome Powell, but the market seems unfazed by his threats.
• The Federal Reserve is expected to keep interest rates steady at its upcoming meeting, despite some signs of inflation picking up.

Company Earnings:
• Nvidia (NVDA) reported solid earnings and announced plans to resume sales of its AI chips in China.
• TSMC (TSM) posted a record quarterly profit, citing stronger demand for AI chips.
• Netflix's (NFLX) second-quarter results were disappointing, with investors looking for more clarity on the company's full-year guidance.

Looking Ahead:
• The market will continue to navigate trade tensions and economic data releases in the coming weeks.
• The Federal Reserve's decision on interest rates will be closely watched, particularly given President Trump's criticism of Fed Chair Jerome Powell.