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WEEKLY SUMMARY: Stocks close higher despite renewed trade uncertainty
U.S. stocks rebounded during the holiday-shortened week, although major indexes faced some selling pressure late in the week and finished below their best levels. The Nasdaq led the way, gaining 2.01%, followed by the S&P 500 Index (1.88%). Smaller-cap indexes lagged. Equity markets opened higher following a weekend announcement from President Trump that he would delay the introduction of a new 50% tariff on imports from the EU until July 9. Later in the week, the U.S. Court of International Trade ruled that President Trump did not have the authority to impose the vast majority of the global tariffs that have been implemented since the start of his second term, sending stocks sharply higher on Thursday morning; however, the administration quickly appealed the ruling, and a federal appeals court put a temporary hold on the ruling Thursday evening, which led to stocks giving back some gains by the end of the week. Comments from Treasury Secretary Bessent about U.S.-China trade talks being “a bit stalled,” as well as comments from President Trump suggesting that China had “violated” its preliminary agreement with the U.S., also seemed to dampen investor sentiment late in the week. On the macro side, US PCE core inflation (May) eased while US consumer confidence rebounded. US Treasuries gained on court ruling against tariffs. Stocks in Europe and Japan gained while Chinese stocks retreated. Gold and bitcoin pared gains while the dollar strengthened.
Have a great week-end
Charles for the team