Interest rate and trade war fears reignited volatility, and U.S. stocks briefly dipped back into negative territory for the year. New Fed Chairman Jerome Powell testified to Congress on Tuesday and Thursday, indicating that he sees strength in the economy. This makes four, rather than three, quarter-point rate hikes in 2018 appear more likely. President Trump said he would slap tariffs on steel and aluminum imports and tweeted that trade wars can be “good.” The moves were met with little support even in his own party, and led to more selling.
Weekly Returns:
S&P 500: 2,691 (-2.0%)
FTSE All-World ex-US: (-2.8%)
US 10 Year Treasury Yield: 2.86% (-0.02%)
Gold: $1,322 (-0.5%)
EUR/USD: $1.233 (+0.3 %)
Major Events:
Monday – GE said it will overhaul its board and add three outside directors as it seeks to restructure and stem the flow of bad news and poor operating results.
Monday – In response to reports of harassment and poor corporate culture, Fidelity said it is considering revamping its portfolio management process toward a team approach.
Tuesday – Amazon acquired Ring, a maker of video doorbells, for just over $1 billion.
Tuesday – Comcast said it is planning a bid for European pay-TV Sky, entering a bidding war with 21st Century Fox and Disney.
Tuesday – Fed Chairman Powell said in Congress that he believes the economy has strengthened in the past few months and downplayed concerns of a flattening yield curve.
Wednesday – The SEC issued dozens of subpoenas to technology companies and advisors related to the cryptocurrency markets. The focus appears to be initial coin offerings.
Wednesday – The NFL partnered with Pizza Hut a day after splitting with Papa John’s.
Wednesday – Bill Ackman abandoned his five-year bet against Herbalife.
Thursday – President Trump said he plans to approve 25% duties on steel imports and 10% duties on aluminum.
Friday – Stocks initially extended losses as President Trump tweeted that trade in some cases “trade wars are good,” but rebounded into positive territory by the end of the day.
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