By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Wall Street will continue to focus on global trade with hopes of positive news out of the U.S.- China trade talks being held in Switzerland. On Sunday, U.S. Treasury Secretary Scott Bessent indicated that the talks have been “productive,” and that significant progress has been made. A trade deal between the two countries would eliminate one of the big economic/market uncertainties.
- After last week’s Federal Open Market Committee meeting, multiple U.S. Federal Reserve (Fed) speakers will be on the tapes, including Chairman Jerome Powell. The Fed left rates unchanged and acknowledged that tariffs make policymakers’ job much more difficult. Tariffs will lead to higher prices, with how persistent they will be an open question, while potentially suppressing output and employment. The Fed might have to make a tough decision on which is more important: inflation or jobs.
- On the data front, the Consumer Price Index (CPI) will garner the most attention. CPI and core CPI are expected to remain unchanged on a year-over-year basis at 2.4% and 2.8%, respectively. And finally, earnings continue to roll in with Cisco and Walmart on the tapes.
Three Things to Know
- The Swiss two-year government bond yield is back in negative territory (last at -0.20%) for the first time since the spring of 2022. (Source: Bloomberg)
- U.S. stock buybacks are on pace to easily surpass $1 trillion for the first time this year. (Source: Markets & Mayhem)
- Mother’s Day (celebrated on the second Sunday of May each year) is the busiest day of the year for restaurants, with as many as 48% of people making plans to visit one. And more calls (approximately 122 million) are made on Mother’s Day than any other day of the year. (Source: Town & Country Magazine)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.