Macroeconomic/ geopolitical developments
- U.S. stock indexes fell sharply last week as spiking Treasury yields and renewed tariff threats dampened investor sentiment, pushing major averages back into negative territory for the year despite some resilience from leading tech names.
- U.S. Treasury yields surged last week amid weak demand at a 20-year bond auction, Moody’s credit downgrade, and heightened concerns over fiscal deficits following the House’s passage of a major tax bill.
- President Trump reignited trade tensions by threatening a 50% tariff on all EU imports and a 25% levy on foreign-made smartphones, unsettling markets and prompting defiant responses from European leaders.
- Markets will center on Nvidia’s earnings Wednesday amid trade tensions and inflation worries, with investors watching for AI demand signals, while additional tech and retail reports and key economic data round out the week.
Global financial market developments
- US and global equity averages sold off on the week.
- US and European bond yields were higher on the week.
- The US Dollar Index was lower on the week.
- Gold futures were higher on the week.
- Oil futures prices were little changed on the week.
Key this week
Central Bank Watch: The main central bank activity this week is the Federal Open Market Committee Minutes on Wednesday.
Macro Data Watch: The main macro data releases this week are the US GDP on Thursday and US PCE on Friday.
Earnings Watch: US Q2 earnings are coming to an end, this week, Nvidia and Costco release their earnings on Wednesday and Friday respectively.
US stock markets closed Monday due to Memorial Day
| Date | Major Macro Data |
| 05/26/2025 | Nothing of note; US Memorial Day holiday, UK late May Bank holiday |
| 05/27/2025 | German and EU Consumer Confidence; US Durable Goods Orders, Consumer Confidence and Housing Price Index |
| 05/28/2025 | FOMC Minutes; German Unemployment Report |
| 05/29/2025 | US GDP and PCE (QoQ) |
| 05/30/2025 | Japanese CPI and Retail Trade; German Retail Sales and CPI; Canadian GDP; US PCE (MoM)(YoY) and Michigan Consumer Sentiment |
