The S&P 500 (SPX) closed every single trading day this week in the green while the Volatility Index registered a weekly loss of 11.7% in an extremely bullish showing.
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In the beginning of April, the SPX was down by 15% year-to-date while the Nasdaq 100 (NDX) had an 18.5% loss. Both indices are now up on the year in an incredible comeback.
This morning, the University of Michigan released its preliminary May Index of Consumer Sentiment with a reading of 50.8, the second-lowest level on record and below the expectation for 53.4. If the reading holds, it will mark the fifth consecutive month of declines. In addition, the university’s year-ahead inflation expectation is now 7.3% compared to 6.5% in April. That’s much higher than April’s consumer price index (CPI) of 2.3%, marking the lowest rate since February 2021.
In other news, President Trump has warned that Americans will see “their Taxes going up 65%” if his “one, big, beautiful bill” isn’t passed. The bill still faces several hurdles before it can be passed as it faces opposition from both parties.
Finally, the U.S. and EU and have begun “serious” trade talk negotiations, according to the Financial Times. During the past week, the two sides exchanged trade documents highlighting key areas of consideration. EU trade commissioner Maroš Šefčovič told the FT that the EU was open to purchasing more gas, weapons, and agricultural products from the U.S. and reducing its trade reliance on China for certain products as part of trade negotiations.
The S&P 500 closed Friday with a 0.70% gain while the Nasdaq 100 jumped higher by 0.43%.
