Weekly Market Update

Weekly Market Update for the Grand Protector

As we close out the week, US stocks have shown some resilience in the face of inflation data and trade tensions. Here are the key takeaways from the past few days:

Market Performance:
• The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) rose roughly 0.6% on Friday
• The tech-heavy Nasdaq Composite (^IXIC) climbed 0.4%
• Despite the gains, all three major indexes ended the week lower by less than 1%

Economic Data:
• August's Personal Consumption Expenditures (PCE) index showed prices rising in line with expectations, with a core PCE measure of inflation at 2.9% year-over-year
• The University of Michigan's consumer sentiment survey found that Americans were more pessimistic about the US economy than expected in September

Trade Tensions:
• President Trump announced new tariffs on imports of branded drugs and heavy trucks, set to take effect on October 1
• Shares of European and Asian drugmakers faltered after the announcement

Key Themes:
• Markets are grappling with concerns about the sustainability of the AI boom and a high risk of a US government shutdown
• The Federal Reserve's policy outlook remains uncertain, with signs of division among policymakers denting hopes for another two rate cuts this year