The potential for new tariffs weighed on U.S. stocks last week as the U.S. Dollar gained. The S&P 500 was down about 1% while international developed markets were up about 0.8% and emerging markets rose 0.3%.
U.S. Treasury yields continued their push lower as the 10-year yield tested the 4.50% mark. The 10-year yield dropped by about 0.11% whereas the 2-year yield dropped by 0.09%.
Over the weekend, President Trump initiated tariffs on Canada and Mexico, two of the U.S.’s biggest trading partners, and added additional tariffs to Chinese imports.
A look ahead
Two more of the Magnificent 7 companies report earnings amid another busy earnings week. Mega-cap communications and technology companies will headline the earnings week.
Economic data turns toward the labor market. The JOLTS report will show how companies are hiring and firing while the payrolls report on Friday is expected to show more job gains and the unemployment rate to stay the same.
