The major U.S. stock indexes finished the week modestly lower, with the Nasdaq Composite Index holding up best. New tariffs were announced this week in more than 20 countries, with the 90-day pause extended to August 1. However, market reaction was muted compared with previous tariff announcements. NVIDIA hit the $4 trillion market capitalization threshold for the first time, helping put the “mega” in the so-called Mag 7 group of mega-cap stocks. On the macro side, US inflation, both June CPI and PPI came in on the low side with little signs that tariffs are pressuring prices higher. US core retail sales rose 0.5% MoM in June, and US industrial Production was up 0.3% - highlighting the resilience of the US consumer and manufacturing base amidst so much policy uncertainty. US business sentiment surprised on the upside: The Philly Fed index jumped to +15.9 from -4.0 a month ago. US Long-Bond yields were higher for the 3rd straight week while the short-end saw yields decline on rumors of Fed Chair Powell leaving. The US Dollar rallied for the second week in a row. Gold managed modest gains for the second week in a row. Palladium rose to its highest since June 2023, up for the 5th week in a row. Platinum returned to gains (after last week's drop), to its highest since 2014 (up 6 of the last 7 weeks). Cryptos hit a $4 trillion market cap for the 1st time ever. But bitcoin ended down on the week (after testing new record highs) while ether soared over 20% on the week (its 4th straight week of gains).
Have a great week-end
Charles for the team