US Equity Markets rallied back into positive territory for the year last week following news that the US and China had agreed to a 90-day reduction in tariffs. The S&P 500 rose 5.3% for the week and is now up 1.3% for the year. The Nasdaq surged 7.2% for the week and is now only down 0.5% for the year, while the Russell 2000 (small cap stocks) increased 4.5% for the week but remains down 5.2% for the year.
Global Equity Markets increased as well on the trade news between the US and China. Developed Markets were up 0.8% for the week and are now up 12.1% for the year. Emerging Markets rallied 3.1% for the week and are now up 9.1% for the year.
US Inflation remained in check for April. The Consumer Price Index (CPI) for April rose 2.3% from a year ago, down from 2.4% in March and the lowest increase since February 2021. Core CPI, which excludes food and energy prices, was up 2.8% from a year ago, flat with March levels.
Of Interest to Us
US China talks reduce tariffs by roughly $300 billion annually. The talks resulted in the US dropping its tariff rate on China from 145% to 30% for 90 days, and China dropped its tariff rate on the US from 125% to 10%. Investors had been expecting a reduction of around $200 billion annually, so the results were better than expected and highlighted both countries' desire to de-escalate. This was not a full trade deal, so there is plenty of work left to do; hopefully progress will be made over the next 90 days.
Market Data
for the week ending 5/16/2025
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