Market Report- May 2025

 Fed meeting as it happened: Powell on Trump's tariffs and uncertainty | Reuters

What a busy start to May 2025! Major developments, such as the May Fed Meeting, the US-UK trade deal on VE Day, and the long-awaited US-China trade deal sparked movement in the market, as well as in politics.  During the last Fed Meeting on May 7th, interest rates were held steady, at 4.25%-4.5%. Chairman Powell noted that the inflation rate is not particularly concerning right now, risks for higher inflation rates and higher economic uncertainty are not off the table going forward. This is due to the economic volatility caused by the reciprocal tariffs imposed by the Trump Administration on April 2nd. Powell says that Trump's policy is "in a good place," and that the Fed will act accordingly to developments in the coming months, though not hinting at lowering interest rates in the future.

US-UK Trade Deal as it happened: Trump says 'breakthrough' deal reached with Britain | Reuters

On May 8th, President Trump announced that the US and the UK have signed a trade deal, with the goal of bolstering economic security for both nations, as well as ensuring a fair and open market between the two nations. The trade deal includes the lowering of tariffs and non-tariff trade barriers for both nations, as well as the increased trade of automotive, agricultural, and medical supplies between the two nations. This deal will ease tensions between the US and the UK, and ensure the long-standing relationship between the US and the UK continues to thrive for years to come.

Trump-China Tariff War: China Denies Trade-Talk Reversal - Business Insider

On May 11th, the Trump Administration announced that a trade deal with China has been agreed upon, following Treasury Secretary Scott Bessent's trip to Switzerland to meet with Chinese trade officials. After tensions reached new levels after President Trump raised tariffs on Chinese imports to 145%, followed by China raising its tariff rate to 125%, the two countries decided to meet to figure out the next course of action. This meeting was likely fueled by the struggling Chinese economy, and China's wish for the US to ease the economic burden of the tariffs. As a result of the trade deal, stock futures jumped awaiting further details on the deal. 

Stock Market Images – Browse 4,225,852 Stock Photos, Vectors ...

It will be interesting to see the developments in the economy and in politics over the remainder of the month. With anticipated trade deals and further tariff news expected, we might lead our way into a summer of economic success and triumph.


Comments

Post a Comment

Popular posts from this blog

Market Report- March 2025

Image
    After multiple tumultuous and unpredictable weeks, the stock market is showing signs of recovery, and of positive momentum. Economic indicators, such as GDP growth, unemployment, and inflation, show signs of decreasing uncertainty, after the market's panic over the Trump tariffs. This past week, in particular, the Fed left interest rates unchanged, between 4.25%-4.5%. With that being said, the lack of change in Fed interest rates prompted markets to quell some of the fears of recession, and prolonged economic turmoil.  Investors, prior to the Federal Reserve's March meeting, feared major indexes, such as the S&P 500 and the NASDAQ, sliding deeper into correction territory, the US economy teetering on the break of recession, and the emergence of stagflation. For clarification, stagflation is when the economy experiences high inflation, and high unemployment, mixed with little to no economic growth. A prominent example of this occurred during the Oil Crisis of 1973 ...
Read more

Market and Politics Report- End-July 2025

Image
  Market and Politics Report- End-July 2025  In this article, we will discuss the second half of July. From AI developments to developments in the market, the end of July was packed with info you do not want to miss. Through July, starting in the second half of the month, several key trade deals were finalized. Deals were made with the EU, Japan, South Korea, Indonesia, and Singapore. These trade deals were made in response to Trump's extension of the tariff deadline (from July 1 to August 1), announced on July 9. Basic details for each trade deal include lower tariffs for both parties, increased market access in foreign markets for the US, and an assertion of the American First foreign policy doctrine. All of these elements of the trade deals bolster the global economy, and allow the US to experience fair trade for the first time in nearly half a century. On July 23, the Trump Administration announced its AI Action Plan, an outline for the future of the US's AI development, a...
Read more

Markets react to Trump tariffs- April 2025

Image
This has been the face of many traders over the past couple of days on Wall Street, and across the world. On April 2, 2025, President Trump unveiled his highly anticipated reciprocal tariffs on foreign imports, with all nations facing a minimum 10% tariffs on all goods they export to the US. Some countries, such as China, Vietnam, Indonesia, Canada, Mexico, and Cambodia have faced higher tariffs. For example, a 46% tariff was placed on Vietnamese imports.  President Trump deemed April 2nd, "Liberation Day," claiming that the US had been ripped off by other nations through trade for decades, and that the US was finally "free" from trade imbalances and from getting "cheated" by other nations. However, global markets reaction to the tariffs was not one of excitement and promise, but of fear and distress.  From April 3rd to April 4th, global markets saw a sharp decline, with all major US indexes in correction territory, especially the Russell 2000 Index in a b...
Read more