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Mint
19-07-2025
- Business
- Mint
US Market: Wall Street wraps up a record-setting week with a quite finish amid news of 15% Trump's Tariff push on EU
US Market: Wall Street wrapped up its third winning week in the past four with a subdued finish on Friday following reports that President Donald Trump is advocating for higher tariffs on the European Union. The S&P 500 dipped slightly by less than 0.1% after reaching an all-time high the previous day. The Dow Jones Industrial Average dropped by 142 points, or 0.3%, while the Nasdaq composite inched up by less than 0.1%, marking its own record. According to reports, Trump is insisting on a minimum tariff of between 15% and 20% in any agreement with the EU, as indicated by the Financial Times, citing three individuals familiar with the discussions. The EU is trying to secure a trade agreement with the U.S. ahead of Trump's deadline of Aug. 1, when he has pledged to implement 30% tariffs on the bloc. Data released on Friday showed a decline in consumer concerns regarding inflation due to tariffs, dropping to its lowest point since February. The University of Michigan's July Survey of Consumers indicated that overall consumer sentiment increased by 1.8% from June to 61.8, matching the forecast and reaching its highest level since February, according to reports. In terms of earnings, Netflix's stock fell 5% after the company announced it anticipates its operating margin for the second half of this year will be lower than in the first. Shares of 3M declined by over 3% after the firm adjusted its forecast for organic sales growth to a 2% increase, down from a previous lower estimate of between 2% and 3%. A 2% decline in American Express shares post-earnings contributed to the Dow's decrease. In the upcoming week, market participants will be closely watching the comments from Fed Chair Jerome Powell during a conference in Washington on Tuesday. (With inputs from and AFP) Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
CNBC
18-07-2025
- Business
- CNBC
Inflation outlook tumbles to pre-tariff levels in latest University of Michigan survey
Consumers' worst fears about tariff-induced inflation have receded, though they are still wary of price increases to come, according to a University of Michigan survey Friday. The university's closely watched Survey of Consumers for July showed overall sentiment increased slightly, rising 1.8% from June to 61.8, exactly in line with the Dow Jones consensus estimate and at its highest level since February. Questions on current conditions and future expectations produced monthly gains as well. On inflation, the outlook at both the one- and five-year horizons both tumbled, falling to their lowest levels since February, before President Donald Trump made his "liberation day" tariff announcement on April 2. The one-year forecast plunged to 4.4%, down from 5% in June and well off the 6.6% level in May, which was the highest reading since late 1981. For the five-year outlook, the expectation slid to 3.6%, down 0.4 percentage point from June. "Both readings are the lowest since February 2025 but remain above December 2024, indicating that consumers still perceive substantial risk that inflation will increase in the future," survey director Joanne Hsu said in a statement. Indeed, the respective outlooks in December were for 2.8% and 3%, largely in line with readings throughout 2024, before Trump took office in January. Worries peaked over inflation as Trump levied 10% across-the-board tariffs as well as so-called reciprocal duties that he has backtracked on pending negotiations. However, in recent days he has announced tariffs on individual products such as copper, raising the specter of future price increases. The readings are below their long-term averages, with the headline sentiment index down 6.9% from a year ago and 16% from December. The expectations reading fell 14.8% from July 2024, though the current conditions index was 6.5% higher.
Business Insider
28-06-2025
- Business
- Business Insider
Stock Market News Review: SPY, QQQ Resilient as U.S.-Canada Trade Talks End, Inflation Rises
Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) secured new intraday all-time highs on Friday, although some of the gains were erased after President Trump said that the U.S. had terminated its trade talks with Canada. Confident Investing Starts Here: Following Canada's decision to proceed with its digital services tax on U.S. technology companies, Trump announced a halt to all U.S.-Canada trade discussions. The tax charges a 3% fee on all U.S. tech revenue above C$20 million, or about $14.6 million, collected from Canadian users. 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' said Trump on Truth Social. Trump also said that the U.S. would no longer consider removing sanctions on Iran following a speech from Iranian Supreme Leader Ayatollah Ali Khamenei. Khamenei downplayed the damage of the U.S. strikes on three of Iran's nuclear sites and said that the country had delivered a 'slap to America's face.' Meanwhile, the core personal consumption expenditures (PCE) index, the Fed's preferred gauge of inflation, showed a monthly rise of 0.2% and a yearly rise of 2.7%. Economists were expecting growth of 0.1% and 2.6%, respectively. Furthermore, April's core PCE was revised upward to 2.6% from 2.5%. Core PCE excludes food and energy prices from the regular PCE index given their volatility. Shifting gears to more optimistic news, Trump is preparing executive orders to support AI development, according to Reuters. The orders could include green-lighting the construction of AI data centers on federal land and easier grid access for new energy projects, said sources close to the matter. What's more, consumer sentiment could be in the early stages of a recovery. The June Index of Consumer Sentiment rose by 16% month-over-month to 60.7, reversing six consecutive months of declines. Economists were expecting 60.5, with a higher figure representing a more positive economic outlook. At the same time, fears over tariff-driven inflation and economic uncertainty still persist. 'Despite June's gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,' said Survey of Consumers Director Joanne Hsu.
The Star
27-06-2025
- Business
- The Star
UM consumer sentiment index rises for first time in 6 months
CHICAGO, June 27 (Xinhua) -- The Consumer Sentiment Index released Friday by the University of Michigan Surveys of Consumers rose to 60.7 in the June 2025 survey, up from 52.2 in May and below last June's 68.2. The UM consumer sentiment has improved for the first time in six months. The Current Index rose to 64.8 in June, up from 58.9 in May and below last June's 65.9; the Expectations Index rose to 58.1, up from 47.9 in May and below last June's 69.6. Labor market expectations improved in June but remain considerably worse than at the beginning of the year. About 57 percent of consumers expect unemployment to rise in the year ahead, down from 66 percent in March but still much higher than the 40 percent seen in December 2024. Expectations for consumers' own income growth improved modestly in June, but June readings were worse than six months ago. Expectations for personal finances soared 17 percent from near historic lows in May but were 17 percent below December 2024. Beliefs about the anticipated effects of tariffs have shaped consumers' views of the economy this year. In June, about 59 percent of consumers provided unsolicited comments about tariffs, down from 66 percent in May but marking three consecutive months a majority of consumers did so. The share of consumers expecting business conditions to worsen in the year ahead fell from 64 percent in May but stood high at 55 percent, compared with just 29 percent in November 2024. "Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained, and the worst-case scenarios for the economy have not come to fruition," said economist Joanne Hsu, director of the University of Michigan's Survey of Consumers. "However, consumers still worry that higher inflation and an economic slowdown are on the horizon, and they remain very cautious." The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous United States an equal probability of being selected. Interviews are conducted throughout the month by telephone.
Yahoo
14-06-2025
- Business
- Yahoo
America's deepest inflation fears are starting to fade
Americans are feeling better about the path forward for inflation. The latest University of Michigan consumer sentiment survey released Friday showed pessimism over the inflation outlook lessened in June, as one-year inflation expectations plunged to 5.1% from the more than four-decade high of 6.6% reached in May. Long-run inflation expectations, which track expectations over the next five to 10 years, also fell, hitting 4.1% in June, down from 4.2% in May. The broader consumer sentiment index rebounded as well, rising to 60.5 in June, above the 52.2 seen in May, which had been one of the lowest readings on record. "Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed," Survey of Consumers director Joanne Hsu wrote in the release. Our Chart of the Week shows inflation expectations coming off the boil. Put simply, expectations for price increases are more tempered than they were a month ago, but they are still not as optimistic as they were six months ago. But this framing — "better than feared" — is the story of what's brought the S&P 500 (^GSPC) back near all-time highs. Like consumers, investors made peace with these disappointments and welcomed the improvements that followed. Tariffs are still higher than Wall Street expected coming into the year, but not as high as the peak fears seen in April. The Federal Reserve is expected to cut interest rates later this year, but not by as much as hoped last year. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Strategists are growing more bullish on stocks, though the median S&P 500 target among strategists sits at 6,100, well below the 6,500 seen in December. However, no fewer than 11 Wall Street firms cut their S&P 500 targets as markets sold off in April; at least eight of these firms have since raised their outlooks again. Both groups, consumers and investors, ultimately ask themselves the same two-part question: Are things going well now? And are they getting better or worse? It's the latter that usually moves the needle. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
