US Stocks Close Out the Week Lower – Nasdaq Down 1.36%
All three major US indices ended the week lower on Friday after President Trump announced plans for reciprocal tariffs and employment data came in mixed. The Dow Jones fell 0.99%, the S&P 500 dropped 0.95%, and the Nasdaq lost 1.36% on the day, locking in weekly losses for all three.
Treasury yields regained more of the losses seen earlier in the week, with the 2-year adding 7.7 basis points to rise to 4.289%, while the 10-year pushed 6 basis points higher to 4.495%. The dollar followed yields higher, with most major currencies dropping back into recent ranges.
Oil prices recovered some of their recent losses but remain near range lows, with Brent up 0.5% to $74.66 and WTI rising 0.55% to $71.00. Gold spiked to another fresh high following the NFP print but swiftly dropped back, closing up just 0.17% on the day at $2,859.40.
Data and Central Bank Updates in Focus for US Markets This Week
Markets have been largely dominated by geopolitical developments in recent weeks as the new President and administration settle into their roles. However, traders are now beginning to focus more on economic data and its implications for central bank policy.
Last week provided the first round of Tier 1 US data in the form of jobs reports, which still indicate a relatively resilient market. This week, attention shifts to inflation numbers. In addition, Federal Reserve Chair Jerome Powell will deliver his semi-annual testimony before Congress on Tuesday and Wednesday, offering potential insights into the Fed’s stance on recent data and possible risks stemming from new policy decisions.
Several other FOMC members are also scheduled to speak this week, and with markets currently not expecting another rate cut until September, these updates could trigger volatility.
Quiet Start to the Week on the Economic Calendar
The macroeconomic event calendar is relatively quiet to start the week, with little in the way of Tier 1 data releases expected to move markets. However, comments from President Trump on Friday regarding further tariff action have been followed up today with indications that he plans to impose 25% levies on steel and aluminium, already leading to increased market volatility.
Over the weekend, Chinese data releases—including CPI and PPI figures—came in close to expectations, while new loans data is scheduled for release at some point during the Asian session today.
There is little else of note in the Asian session, and both the European and US sessions are expected to remain quiet. However, European Central Bank (ECB) President Christine Lagarde is set to speak midway through the day, which could trigger some movement in the euro.
