US stocks posted gains for the week, pushing the S&P 500 Index and Nasdaq Composite to record highs for the 2nd consecutive week. The Dow Jones rose 1.26%, while the Russell 2000 index climbed over 0.9%. Stocks were supported by headlines around several new trade deals during the week, including announcements that the U.S. had reached agreements with Japan, Indonesia, and the Philippines. Reports that the U.S. and EU are progressing toward a deal ahead of August 1 also appeared to boost sentiment during the week. On the earnings front, Alphabet gained more than 4% as results beat consensus estimates, while the company’s commentary around AI appeared to provide a tailwind for AI-related stocks.

Flash note

Interest rates generally declined last week with renewed concerns around US tariffs dampening growth expectations, while inflation expectations continue to rise. Credit and EM markets held firm.

Meanwhile, Nvidia now accounts for 3% of the global market cap. Each week, the Syz investment team takes you through the last seven days in seven charts.

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.

President Trump shakes fixed income markets again. Interest rates rise amid intensifying political pressures on the Fed and renewed tariff threats. Tariff uncertainties weigh on Credit and Emerging Market Debt. Primary market demand remains buoyant but volatility looms for spreads and rates.

Nvidia, the $4 trillion dollar chip, the Swiss franc goes for gold and never bet against Elon! Each week, the Syz investment team takes you through the last seven days in seven charts.

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 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.

Buoyant primary market activity and flows continue to support credit and EM debt markets, while government bonds reverse course amid reassuring economic data as markets revised down central banks’ rate cut prospects.

The US dollar begins 2025 with its weakest start since 1973 while the Swiss franc approaches its 2011 high of 1.3125 against the dollar. Each week, the Syz investment team takes you through the last seven days in seven charts.