News

It was a four-day week in the US stock market but the momentum from last week’s huge rebound didn’t last. The peak of the week came on Monday after some electronics tariffs were removed but it didn’t take the sellers long to step in.

On the week:

• S&P 500 -1.6%
• Nasdaq -2.6%
• DJIA -2.7%
• Russell 2000 +1.1%

Trump had some positive comments on a China deal after hours but the market is going to want actual progress.

This article was written by Adam Button at www.forexlive.com.

Trump:

• China has reached out a number of times
• We’re talking to China
• I don’t want to go higher on China tariffs
• Says he wants US Steel to remain in US
• If China tariffs go higher, people won’t buy
• I think China deal will be made over the next 3 to 4 weeks
• I think we have a lot of time

Lutnick:

• Confident we will work something out with China

These are positive comments.

This article was written by Adam Button at www.forexlive.com.

As Powell said yesterday, the US federal budget deficit isn’t a hiring problem and it’s not even a discretionary spending problem, it’s an entitlement and interest problem. This isn’t something that can be solved with a DOGE-style chainsaw, it’s going to require a wholesale change int the system and there is no political will to do that… so we will get deficits.

This article was written by Adam Button at www.forexlive.com.