Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 3.4%, the S&P 500 was up 5.3%, and the NASDAQ rose 7.2%. Foreign stocks (MSCI EAFE) were also up, rising 0.8%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.44%. (Data source: Wall Street Journal)
Inflation Moves Higher
CPI data for April was released last week, and inflation came in at 2.3% year-over-year, the lowest number since February 2021. Core-CPI, which excludes food and energy, came in at 2.8% year-over-year. These numbers came in slightly cooler than estimates, which was a positive for the market as we continue to get close to the 2% goal of the Fed. As inflation has stabilized and moves closer to the 2% goal, the new worry will be the impact of tariffs on inflation. Markets will continue to watch inflation data closely to see if there is any substantial impact and if it adjusts Fed policy.
Domestic Markets Turn Slightly Positive for the Year
The S&P 500 fell 19% from February 19th until April 9th when the pause on tariffs was announced. Since then, markets have rallied and now the Dow Jones & S&P 500 are positive for 2025. The NASDAQ remains slightly negative for the year as Tech was hit the hardest during the downturn. The rally higher has been just as quick as the decline lower, as some clarification on tariffs have eased investor worries. Although hard at times, this was the perfect example of why sticking to your long-term goals as an investor is the best thing to do and avoid making rash decisions.
UK & EU Agree to New Deals; First Time Since Brexit
The UK left the EU in 2020, and this was the first formal summit for the two since then. The major agreements are on defense cooperation that will allow the U.K. to access an EU defense loan program worth $170 billion. Another part of the deal is easing trade flows between the UK and the 27 nations that make up the EU. This is the 3rd trade deal struck by the UK in the past 3 weeks, the other two with the USA and India. (CNBC)
Quiz:
What is the return for international markets (MSCI EAFE) for 2025? (Scroll Down for Answer)
- 12.7%
- 9.3%
- 5.9%
- 3.1%
Answer below.
Have a Great Week!
Answer:
1. 12.7%. International markets continue to outperform domestic market by double digits in 2025.
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