Weekly Market Update – May 12, 2025

Price Return Last Week

S&P 500 (0.5%) S&P Mid Cap +0.5% Russell 2000 +0.1%

MSCI EAFE 0.0% MSCI EM +0.5%

10 Yr US Treasury Rate – rose from 4.32% to 4.38%

Source: Refinitiv Eikon

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Recent News

China Tariff Deal – A major breakthrough in negotiations with China emerged over the weekend, where the U.S. agreed to lower tariffs from 145% to 30%.  China agreed to lower tariffs on U.S. goods to 10% from 125%.  The negotiated rates are in place for 90 days while the two countries search for a permanent agreement.  The deal does not include any sector-specific tariffs that have been put in place.  The stock market rose approximately 3% on reports of the deal.

Source: The Wall Street Journal

U.K. Tariff Deal – A framework for a deal with the U.K. was reached but did not offer many details.  The press release was two pages in length and narrow in focus.  The U.K. pledged to remove its 20% tariff on U.S. beef and purchase U.S. airplanes, while the U.S. agreed to allow British jet engines to be imported with no tariff.  Notably absent from the statement was any coordination with the U.K. to negotiate a joint trade deal with China.  Also noteworthy were the lack of enforcement mechanisms and the realization that a 10% tariff will remain in place on all imports unless specifically exempted.

Source: The White House, The Wall Street Journal

Fed Holds Steady – The Federal Reserve left rates unchanged at a range between 4.25%-4.50%.  Fed Chair Jerome Powell stated that “the scope, the scale, the persistence of those effects are very, very uncertain,” in reference to recent tariff announcements.  He continued that “it’s really not at all clear what it is we should do.”

Source: Thomson Reuters

Bank of England Cuts – The Bank of England’s Monetary Policy Committee voted to lower interest rates by a quarter point to 4.25%.  They have now cut rates the same as the Federal Reserve since last summer but less than the European Central Bank.  Statements from the BoE indicated that they felt increases in U.S. tariffs would potentially weigh on British economic growth and may reduce inflation in the country.

Source: Thomson Reuters

More Money Than God – The Vatican City State controls 17 Bloomberg terminals, which represents the largest Bloomberg per capita ratio in the world at 0.02.  Each Bloomberg subscription costs approximately $30,000 per year adding up to nearly $500,000 in annual expenses.  With investments estimated at approximately $6 billion, it makes sense that they would want to keep a close eye. 

Source: CFA Institute, Investopedia, IOR Istituto per le Opere Religione

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Upcoming Events

5/13 – CPI

5/14 – Notable Earnings Reports: Copart, Cisco

5/15 – PPI, Retail Sales, Notable Earnings Report: Deere & Co, Walmart, Applied Materials

5/16 – Consumer Sentiment

Source: Refinitiv Eikon