Weekly Market Update

Market Update

Key Takeaways:
• US stocks experienced a volatile month, with the S&P 500 logging its best May since 1990 and its best month since November 2023.
• The Dow Jones Industrial Average added 4% over the month, while the Nasdaq surged nearly 10%, driven by tech sector strength.
• Tariff uncertainty remains a key concern, with President Trump's latest comments on China and the proposed rule to expand tech restrictions on China adding to market volatility.

Market Summary:

The US stock market has been navigating a mix of tariff uncertainty and signs of cooling inflation. Despite trade-related turbulence, all three major indices finished both the week and the month in the green. The S&P 500 rose over 6% for May, while the Dow added 4%, and the Nasdaq surged nearly 10%.

Key Events:
• President Trump delayed imposing a stepped-up 50% tariff on all EU products from June 1 until July 9 to allow time for negotiations.
• The US Court of International Trade blocked the implementation of Trump's Liberation Day tariffs, but a federal appeals court later reinstated most of the tariffs.
• Nvidia reported better-than-expected first-quarter revenue and added that it expects an additional $8 billion charge on losses tied to its H20 chip in the second quarter.
• The Personal Consumption Expenditures (PCE) index showed inflation continued cooling in April, with the core PCE index rising in line with expectations on a monthly and annual basis.

Next Week's Economic Calendar:
• GDP growth rate
• Jobless claims
• Inflation data

Stay informed about market developments and be prepared for any potential changes in the market landscape.