U.S. equities ended the week on a stronger footing, with the S&P 500 posting its second consecutive weekly gain, the first such occurrence since January. The index also extended its winning streak to nine consecutive sessions, supported by continued optimism over easing trade tensions, following President Donald Trump's decision to scale back certain tariffs on automobiles and auto parts.
European stock indexes rose as tariff concerns eased. Eurozone GDP grew 0.4% in Q1, up from 0.2%, while April inflation held at 2.2%. Core inflation climbed to 2.7%, signalling persistent price pressures.
In Asia, Japan's markets advanced as the Bank of Japan kept rates unchanged and cut its growth and inflation outlook. Meanwhile, mainland Chinese stocks declined during a holiday-shortened week, though sentiment was supported by signs that China may resume trade talks with the U.S.
The S&P 500 has risen approximately 8% and the tech-heavy Nasdaq around 11% over the past two weeks, supported by strong first-quarter economic and earnings data, as well as a softer stance from the administration on trade and tariffs.
While uncertainty remains elevated, we continue to favor sectors like financials and health care, which are less exposed to tariff risks and may benefit from potential progress on tax reform and deregulation. In fixed income, we still see value in investment-grade bonds with seven- to 10-year maturities, particularly if the Fed moves toward rate cuts in the latter half of the year.
| Index | Current Price | 1 Week Return % |
|---|---|---|
| S&P 500 | 5,686.67 | 2.92% |
| DJIA | 41,317.43 | 3.00% |
| Nasdaq | 17,977.73 | 3.42% |
| FTSE 100 | 8,596.35 | 2.15% |
| Shanghai Composite | 3,279.03 | -0.49% |
| Sensex | 80,501.99 | 1.63% |
| ADX Index | 9,555.97 | 1.75% |
| Gold | 3,257.00 | -1.26% |
| Brent Oil | 61.29 | -8.34% |
Financials and Health Care
Focus on sectors less exposed to tariff risks
Investment-grade bonds with 7-10 year maturities
While uncertainty remains elevated, we continue to favor sectors like financials and health care, which are less exposed to tariff risks and may benefit from potential progress on tax reform and deregulation. In fixed income, we still see value in investment-grade bonds with seven- to 10-year maturities, particularly if the Fed moves toward rate cuts in the latter half of the year.
Disclaimer
This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.
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