Weekly Market Update

Weekly Market Review

This week's market action was marked by a mix of tariff-related announcements from President Trump and the Fed's stance on interest rates. Here are the key takeaways:
• Tariffs: President Trump threatened to impose 35% tariffs on Canadian goods, among other countries, which led to a decline in US stocks on Friday. However, markets largely took these threats in stride, with some experts suggesting that this may be part of Trump's negotiating tactic.
• Interest Rates: The Fed's June meeting minutes showed that only a few officials supported interest rate cuts as soon as this month. This is a contrast to the market's expectations for multiple rate cuts later in 2025 or early next year.
• Nvidia: The AI chipmaker continued its upward trajectory, reaching fresh record highs and becoming the first public company to ever cross the $4 trillion market cap threshold.
• Earnings Season: Delta Airlines reported strong earnings, with shares jumping 12% as the carrier restored its earnings outlook. Other companies like Levi's also reported decent outlooks, boosting their stock prices.

Market Outlook

The market's focus remains on potential trade pacts with larger US trading partners and the impact of tariffs on businesses. While investors appear to be experiencing tariff fatigue, some experts caution that markets need to start taking these threats more seriously. The Fed's stance on interest rates will also continue to influence market sentiment.

Key Takeaways
• Tariffs may be part of President Trump's negotiating tactic, but their impact on markets remains a key concern.
• The Fed's June meeting minutes suggest that interest rate cuts are not imminent.
• Nvidia continues its upward trajectory, with fresh record highs and a $4 trillion market cap threshold.
• Earnings season is underway, with Delta Airlines reporting strong earnings and other companies following suit.