Key Points
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The stock market is more or less flat so far this morning.
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No major macro data is coming out today, nor have there been any policy changes.
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The stock market could still make sharp moves if there are any unexpected developments later in the session.
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The stock market opened slightly positive this morning, but it quickly retreated to a more neutral level as there haven’t been any major positive catalysts to drive it up. Previously this week, inflation came in slightly lower than expected, and a truce was signed between the U.S. and China regarding tariffs.
Both of these developments caused the stock market to climb. However, nothing major is expected to happen today, both macro-wise and regarding policy. The stock market has thus been more slow-moving and could end the session down or up slightly. The president is currently on a Middle East tour, and any unexpected positive announcements could lead the market higher.
Here’s a market update as of 10:00 AM (ET) today.
- The S&P 500 is up 7.41 points, or 0.13%.
- The Nasdaq Composite is up 70.48 points, or 0.37%.
- The Dow Jones Industrial Average is up 63.37 points, or 0.15%.
Fed’s Jefferson Speaks
This is the most important thing that has happened today, and it hasn’t moved the stock market in a major way. Here are some notable comments:
- “Current moderately restrictive policy rate in a good place to respond to economic developments.”
“Watching closely for signs in hard data of weaker activity.”
“Recent inflation data consistent with further progress toward 2% goal, but future path uncertain due to tariffs.” - “I expect lower growth due to trade policy, but I expect the economy to still expand over the year.”
- “Tariffs could lead to higher inflation, still uncertain if impact would be temporary or persistent.”
- “The labor market still solid.”
- “Whether tariffs create persistent inflation depends on implementation, response of supply chains, other factors.”
- “The First-quarter GDP data overstated the deceleration in activity.”
Other News
President Donald Trump’s executive order that aims to bring down drug costs has led to many healthcare stocks cooling off yesterday, and it caused the Dow Jones to end up red. Still, investors haven’t fully priced in the risk, as many of them think enforcing the executive order is not possible. Previous actions like this have led to courts blocking it. The current outlook on pharma/health stocks is still bearish.
House Republicans are pushing a tax bill that proposes $1,000 “MAGA (Money Accounts for Growth and Advancement” savings accounts. The Trump tax bill, in general, is making headlines since it will make the individual income tax reductions originally enacted under Trump’s 2017 Tax Cuts and Jobs Act permanent.
These rates cover brackets from 10% to 37%, with the largest share of tax relief going to the highest-earning households. Plus, it would eliminate federal taxes on tips and overtime pay until 2028, along with new deductions for seniors.
The bill proposes rolling back green energy tax credits and tightening Medicaid and food assistance eligibility to offset the cost of the tax cuts.
Other Assets
- Gold prices are down 1.61% to $3,195.
- Crude Oil Futures are down 0.36%.
- Natural Gas Futures are down 3.7%.
- Bitcoin is down 0.7% to $103,458.
The image featured at the top of this post is ©Chaay_Tee / iStock via Getty Images.