US Stocks Push Higher into the Weekend – Nasdaq up 0.9%
US equity markets closed higher on the final trading day of last week as investors assessed the US Supreme Court’s ruling on President Trump’s tariffs alongside another round of mixed economic data. The Dow advanced 0.47% to 49,625, the S&P 500 gained 0.69% to 6,909, and the Nasdaq Composite outperformed with a 0.90% rise to 22,886. In fixed income markets, the US 2-year Treasury yield increased by 2.1 basis points to 3.478%, while the 10-year yield rose 1.5 basis points to 4.083%, as the Core PCE inflation data came in stronger than expected. The DXY declined 0.14% to 97.79, although still locked in its best weekly result since November. Commodity markets were mixed but generally firmer. Brent crude rose 0.14% to $71.76 per barrel and WTI crude added 0.12% to $66.48, as market participants continued to monitor developments between the United States and Iran. Gold posted a notable gain of 2.23%, rising to $5,107.45, supported by renewed tariff-related uncertainty and ongoing geopolitical considerations.
Trade Tariffs Back in Focus for Markets
There is no doubt that the ‘T’ word will be heavily used in market commentaries in the coming days after the Supreme Court ruled President Trump’s sweeping tariffs illegal on Friday. Trump immediately invoked part of the 1974 Trade Act to push 10% tariffs on all imported goods, before then swiftly increasing that level to 15%, the maximum allowed by the Act. The question of whether already imposed tariffs will be refunded – and how – also still remains to be answered. The overwhelming opinion for most market participants is that this move adds more uncertainty to the market as traders now await fresh updates, with some trading partners now looking to renegotiate trade deals agreed on tariff threats that now appear to be negligible. So overall, most expect more volatility and not less in the coming days, and that could weigh on market sentiment significantly.
Quiet Calendar Day to Start the Week
Looking ahead, the macroeconomic calendar is relatively light today, as it is for most of the week. However, market participants are likely to remain attentive to further developments regarding US trade policy, with volatility expected to persist. Bank holidays in both China and Japan should see liquidity at lower levels for the Asian session and, so far, there has been little volatility after the weekend’s updates; however, traders remain cautious. The London session sees the release of the latest German IFO Business Climate survey (exp. 88.4), which could see a reaction in the euro, while there is a focus on central banker updates in the New York day with little in the way of data scheduled. We hear from Federal Reserve Governor Christopher Waller early in the session when he speaks from Washington, and then later in the day, we hear from departing ECB President Christine Lagarde when she speaks from the same event.
Explore all upcoming market events in the Economic Calendar.
