The benchmark S&P 500 index has now notched seven negative weeks out of nine, as tariff developments continue to sour sentiment. After several - sometimes confusing - adjustments and clarifications to tariff policy, things were quieter on that front over the past week. Instead, U.S. President Donald Trump and other officials made public remarks about positive trade negotiations with multiple countries except China.
At the Economic Club of Chicago, The Federal Reserve chair, Jerome Powell expressed concerns about the potential higher-than-expected consequences of tariffs, which could potentially strain the central bank’s dual mandate of maintaining stable prices and fostering strong employment. Trump later criticized Powell for not lowering interest rates and has reportedly been considering whether to remove him from his position.
China has suspended exports of certain rare earth minerals and magnets that are crucial for the world’s car, semiconductor and aerospace industries. The move is in retaliation for President Trump’s sharp increase in tariffs.
China’s economy grew at a robust 5.4 per cent in the first quarter of this year as producers front-loaded exports to beat a blitz of tariffs from Donald Trump’s administration. The strong first-quarter growth exceeded Beijing’s full-year target for 2025 as well as the 5.1 per cent forecast by analysts in a Reuters poll.
Meta’s acquisitions of Instagram and WhatsApp helped give it “monopoly power”, the US Federal Trade Commission told a court Monday at the start of a blockbuster trial that could force the $1.5tn tech giant’s break-up. The case is expected to give the clearest signal yet about the Trump administration’s stance on antitrust policy — and its appetite to take on Big Tech.
Google created an illegal monopoly that allowed it to control parts of the online advertising industry, a federal judge ruled Thursday, a decision that could upend one of the technology giant’s core businesses. The ruling marked the second time in eight months that a U.S. judge labeled Google an illegal monopolist—and could lead the Justice Department to seek a forced sale of some of the company’s advertising products. Alphabet’s shares fell 1.5% in Thursday trading.
The European Central Bank cut interest rates to offset the economic blow of tariffs, a move that drew the attention of President Trump, who earlier urged the Federal Reserve to follow the ECB with rate cuts of its own. The ECB on Thursday lowered its key interest rate to 2.25% from 2.5%, its seventh cut in eight meetings, taking borrowing costs to their lowest level since early 2023.
Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley reported a surge in revenues from trading stocks in the first three months of the year, boosted by the volatility in the markets. Goldman’s equity traders had their best quarter ever. Revenues from market trading at JPMorgan Chase were up by 21%, year on year.
