The major U.S. stock indexes finished the week modestly lower, with the tech-heavy Nasdaq Composite Index holding up best. Tariff news dominated the headlines, but market reaction was muted compared with previous tariff announcements. Growth stocks held up modestly better than value. NVIDIA hit the $4 trillion market capitalization threshold for the first time, helping put the “mega” in the so-called Magnificent Seven group of mega[1]cap stocks. U.S. President Donald Trump announced 25% trade levies on major trading partners South Korea and Japan, as well as tariffs at varying levels on other countries, including Canada, South Africa, Thailand, and Malaysia. He also said that his administration would dramatically increase Brazil’s tariff to 50% in a move linked to the country’s legal proceedings against former right-wing President Jair Bolsonaro. In addition to the country[1]specific tariffs, President Trump also announced an upcoming 50% tariff on copper. Minutes from the Federal Reserve’s mid-June policy meeting showed some disagreement among members of the FOMC about the direction of monetary policy. US Treasuries rallied following the release of the FOMC minutes before losing ground to finish the week. The pan-European STOXX Europe 600 Index ended 1.15% higher. Bitcoin broke out to a new record high this week, above $118k. The dollar rallied strongly this week (its best week since February). Silver surged above $38 today – its highest since September 2011.
Have a great week-end
Charles for the team