U.S. stocks closed the week higher, with most indexes snapping multi-week declines. Major indices rebounded on Friday after President Donald Trump said there would be some “flexibility” with tariffs. However, he maintained that the tariffs implemented at the April 2 deadline will be reciprocal, saying all countries that have tariffs on U.S. goods will be charged. The Dow Jones Industrial Average was the best weekly performer, advancing 1.2% while the technology-heavy Nasdaq Composite was the worst-performing index during the week. Value outperformed growth for the fifth consecutive week, bringing its total year-to-date outperformance to 897 basis points. The highlight of the week came on Wednesday as the Federal Reserve kept its policy rate steady at 4.25%–4.5%. Investors appeared to welcome the generally dovish tone following the meeting, with most stock indexes posting solid gains for the day. U.S. Treasuries generated positive returns heading into Friday as yields across most maturities declined following the Fed’s policy meeting. The pan-European STOXX Europe 600 Index ended 0.56% higher, snapping two weeks of losses. Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 1.68% and the broader TOPIX up 3.25%. Mainland Chinese stock markets fell as investors turned cautious after two weeks of gains. Oil prices ended the week higher while Gold closed above $3,000 despite a pullback on Friday. The dollar rallied this week while bitcoin was unchanged.
Have a great week-end
Charles for the team