What happened last week…
The S&P 500 closed with its strongest gains in the month of May since 1990. The 6% gain was driven by easing trade tensions, a better than expected inflation reading and solid corporate earnings. For the week, the S&P 500 gained 1.9%, the Dow Jones Industrial Average gained 1.7% and the Nasdaq Composite led the way with a 2% gain.
Nvidia earnings, which investors held a keen eye to, also took place last week. The companies earnings were seen as crucial to many as they are square in the middle of the trade tensions going on with the US and China. They announced that in Q1, 2025, that they beat both on Revenue ($44.06B vs $43.31B expected) and EPS (.96 Cents per Share vs .93 Cents per Share expected). Importantly, Nvidia’s guidance for next quarter was close to being in-line with analysts expectations even with some uncertainties revolving around the trade war.
On the trade war front, the U.S. Court of International Tradeblocked reciprocal tariffsimposed by President Donald Trump, who cited the International Emergency Economic Powers Act as giving him the authority to implement tariffs, which typically require Congressional approval. However, the three-judge panel said the sweeping tariffs exceeded the president’s authority and gave the Trump administration 10 days to comply with the court’s orders. After an appeal by the White House, a federal court granted the request to temporarily allow tariffs to stay in place.
In regards to some economic data, theGDP growth rate(second estimate) for Q1 2025 beat expectations (-0.3%) as it improved to -0.2%, compared to the first reading of -0.3%, which was a decrease from the Q4 2024 rate of 2.4%. The Q3 2024 rate was 3.1%, Q2 2024 was 3.0%, and Q1 2024 rate was 1.6%. The current reading is the first contraction since Q1 2022.
Happening this week…
On deck for this week, we will get theMay manufacturing PMInumbers on Monday and thenon-manufacturing PMIfor May on Wednesday.
Also coming in on Wednesday will be theADP employment changeand finally on Friday, we will get theMayunemployment rate andaverage hourly earnings.
Thanks for Reading!
- The Rockline Team
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