39. Weekly Market Recap: Key Movements & Insights

Tariff Talks Take Center Stage: Markets Pause as U.S. and China Meet 🇺🇸🤝🇨🇳

Stocks Pause After Rally as Trade Talks, Fed Stagflation Warning, and Market Rotation Shape Outlook

After two weeks of robust gains, the S&P 500 took a breather, slipping 0.4% as investors digested a flurry of trade headlines and a cautious Federal Reserve. The pause comes amid heightened uncertainty over tariffs, a shifting global trade landscape, and fresh signals from policymakers in Washington and Beijing.

Trade Tensions Dominate Market Mood

The week began on a downbeat note, with equities retreating as investors considered the ongoing impact of U.S.-China trade tensions. Sentiment shifted late Tuesday after the White House announced a long-awaited meeting with Chinese officials, scheduled for the weekend in Geneva. The news injected optimism, but volatility persisted. On Wednesday, the Federal Reserve held interest rates steady, citing rising stagflation risks—an unusual combination of slowing growth and stubborn inflation—largely attributed to the trade war's disruptive effects.

Thu…