U.S. equities closed the week higher, supported by upbeat economic data that strengthened expectations the Federal Reserve may cut short-term interest rates at its September meeting. Sentiment was further boosted after the United States and China agreed to extend the deadline for higher tariffs by an additional 90 days.
European indexes also ended the week on a positive note, driven by easing trade tensions and optimism over potential progress in resolving the Russia-Ukraine conflict. In the UK, the economy showed signs of recovery, with GDP expanding 0.4% in June after a 0.1% contraction in May. Meanwhile, new data suggested the labour market weakened less than previously estimated.
In the Asian market, Japan’s equity markets posted strong gains, with both TOPIX & NIKKEI indexes reaching record highs as stronger-than-expected second-quarter economic growth bolstered investor confidence. In China, stocks advanced, supported by news that the U.S. and China agreed to extend their tariff suspension until November.
Markets focused on last week’s CPI report amid concerns that tariffs could boost July inflation. Headline CPI held steady at 2.7% as lower gasoline prices provided relief, while core CPI, which excludes food and energy, edged up to 3.1% from 2.90% its highest since February. Both figures came in largely in line with expectations, offering some relief to equity and bond investors.
Index |
Current Price |
1 Week Return % |
S&P 500 |
6,449.80 |
0.94% |
DJIA |
44,946.12 |
1.74% |
Nasdaq |
21,622.98 |
0.81% |
FTSE 100 |
9,138.90 |
0.47% |
Nikkei 225 |
43,378.31 |
3.73% |
Shanghai Composite |
3,696.77 |
1.70% |
Sensex |
80,597.66 |
0.93% |
ADX Index |
10,221.71 |
-0.87% |
Gold |
3,382.60 |
-2.11% |
Brent Oil (Brent) |
65.85 |
-1.11% |
U.S. stocks are near record highs, but valuations are less attractive. Support may still come from fiscal stimulus, possible Fed rate cuts, deregulation, and easing trade tensions. Volatility could rise if economic data weakens or trade issues persist, creating opportunities to rebalance portfolios, diversify, and add quality assets. We stay positive on U.S. large- and mid-cap stocks, recommend global diversification, and see value in both short- and long-term Treasuries as the Fed takes a cautious approach to easing.
Let our investment specialists help you tailor your portfolio for what’s ahead.
Disclaimer
This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.
