The S&P 500 index fell 0.5% last week as declines led by health care and communication services outweighed gains paced by industrials. The index is now down 3.8% this year.
Concerns about the Trump administration’s tariff policies have weighed on the stock market. Those worries were underscored on Wednesday as Federal Reserve Chair Jerome Powell, speaking after the central bank’s policy-setting committee left interest rates steady, said: “If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment.”
A bit of optimism emerged Thursday after a trade deal between the US and the UK was announced. On Friday, President Donald Trump indicated in a social media post that an 80% tariff on Chinese imports, which would reflect a cut from 145%, may be under consideration as Chinese and US officials prepare to meet this weekend. Many analysts still consider 80% as a high tariff rate, and no further deals have been announced.
Among sectors, health care posted the largest drop, falling 4.3%, followed by a 2.4% decline in communication services. Consumer staples, real estate and materials also declined.
Among the sector rallies in the week, industrials climbed 1.1%, followed by a 0.8% gain in consumer discretionary, a 0.5% rise in utilities and a 0.4% advance in energy. Technology and financials eked out small increases.
This week’s earnings calendar features Cisco Systems, Walmart, Deere and Applied Materials, among others.Economic data will include the April consumer and producer price indexes, two closely watched inflation readings. April retail sales, industrial production and housing starts, as well as May consumer sentiment, are expected this week.
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